How to clear your Personal Credit Report?

Personal Credit Report

If you are guilty of overspending, behind on a few bills or just curious about your credit eligibility you may want to consider requesting a credit report.

Your personal credit report is your credit history. It has information about how well you have handled your money over the years. This includes mortgages, loans, mobile phone contracts, bills and even court judgments such as damages or suits. If you have gone bankrupt or if your property has been repossessed it will be visible on your credit report.

It is important to maintain a good personal credit report because this determines how good your credit score will be. Your credit report and score is used by potential lenders, employers, the courts and for business transactions.

To review and improve your personal credit score you won’t need to visit a Certified Public Accountant (CPA Firm).

How to Clear your Credit Report?

To do this follow these steps and clear your credit report on your own.

Step 1:  Request your credit report:

Everyone is entitled to a FREE copy of his/her credit score every year. To do so get in contact with the local credit information agency or bureau.

Step 2: Check for errors:

Errors are quite common and directly affect your credit score. Here is your credit report error checklist.

• Is my personal information correct and up to date? (Name, date of birth, address, employment history & social security number)
• Are my account details correct and up to date? (Credit limit, mortgage origination date, auto loan status, debt)
• Is there any information that should have aged-off? (Evictions for nonpayment, repossessions, missed child support payment, court orders (removed after 7 years) & bankruptcies (removed after 10 years).
• Is there any duplicate information?
• Is there suspected identity theft or unsolicited inquires?

After you have reviewed your report, submit the errors and corrections to the relevant authority & proceed to step 3.

If there are no errors proceed to step 3

Step 3: Clean up your act!

Start by paying bills on time and catching up on missed payments. You should also repay your loan debt starting with your credit card bills. Thirdly, cut back on spending and start budgeting.

No one is perfect. Your credit report may not be either. Thankfully, there are means of improving it. Your credit report is unlikely to improve overnight and will be a work-in-progress. Be sure to exercise patience and before you know it you’ll have better credit.