This is how I did it with 3 simple steps:

skip to main | skip to sidebar How to clean your credit report

Tuesday, June 19, 2007

How to clean your credit report

Why is it so important to have your credit report clean? Well, this really needs

no explanation – you know it could mean getting a good or bad mortgage interest

rate. It could also make a huge difference on the mortgage refinancing rate for

your existing home, rate for your auto loan, and so on. Actually, it could be

difficult to obtain a new mortgage with problems in your credit report.

Let me start by saying that Federal laws require that all credit reporting

agencies (Experian, Trans-Union, and Equifax) delete any information that is

considered to be inaccurate, erroneous, or obsolete from your credit report. So

there are three major steps to cleaning your credit report:

STEP # 1: Is to check your credit file (from all three companies: Experian,

Trans-Union, and Equifax) to verify if you have any of the following:

• Inaccurate (wrong information), obsolete, or erroneous (not yours)

• Incorrect information on your name, SS#, job, and addresses

So, the first step is to make a list of all the items that you have identified

as inaccurate, erroneous, or obsolete from all credit reports. Organize yourself

since you will constantly need to reference this list for the entire process.

STEP # 2: Dispute the inaccurate, erroneous, or obsolete information

indentified. This is the most difficult part and the most time consuming. You

have two options: find a Lawyer Firm that could take care of this for you or do

this on your own. You can do everything that your lawyer can do if you have the

time and are willing to keep up with the process. This could take anywhere from

one month to over a year.

There are three ways you can dispute your items identified: By Phone (with each

credit company), online, or by mail. I have done all three and my personal

choice is by mail. I like to keep record and I will add confirmation delivery to

all my mails. For all three, you will need to know detail information about what

is being disputed such as: Credit Report Reference number, account name, account

reference, account number, what specifically is being disputed, and the dispute

reason. So here is how to dispute:

Generate an excel file with the following information:

o Your name:

o Your SS#:

o Date you are sending the letter:

o DOB:

o Address:

o Include a copy of your driver license in your mail

o Must sign your Dispute request (Sign the last one and initial the first pages

if more than one).

o And include the item(s) you are disputing. The disputing item must contain the


 Company name

 Account Number

 Reason for dispute which are: Not My Account, Never Paid Late, Paid In

Full, or Other (Describe other).

The credit agency will reply with what they have done with your request within

30 days (they most reply within 30 days). At that point you will review their

explanation and re-submit your request or dispute if you do not agree with their

result. You must continue this cycle until you are satisfied with the output or

credit has been correctly repaired.

There are other things that a lawyer can do for you since they know the law. But

in a nutshell, if you have an error in your credit report, you should be able to

fix it yourself.

STEP # 3: Monitor your credit reports during the entire process. Please note

that this could take up to a year, therefore I recommend you subscribe to a

credit monitoring service that will provide you access to view your credit at

least once a month.

Other important information:

• You have the right for a free credit report if you have been denied credit,

employment, or insurance within the past 60 days. A denial letter should be sent

out to you with all the information you need to request your free credit report.

• Payment in full doesn’t remove your payment history from your credit reports.

The length of time information remains in file as follows:

o Credit and collection accounts: 7 years from the date of last activity.

o Courthouse records: 7 years from the date filed, except Bankruptcy which

remains for 10 years from the date filed. Chapter 13 is 7 long years!