Credit Clean Up

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In a slumping economy, bad credit is an easy trap to fall in. Jobs are scarce, money is tight and bills can be hard to pay, on top of the rampant amount of identity theft and credit card fraud plaguing the nation. Having bad credit can make it nearly impossible to get a mortgage loan or even a regular credit card. So, what can you do to clean up your credit?

Collect data

First, request a credit report. You're entitled to one free report per year. You're also entitled to a free report if you're unemployed, if you've lost employment as a result of something on your credit report, you've been denied credit because of information on your credit report, or if you believe your file may be incorrect due to errors or fraud. If you're not eligible for a free report, you can still get one for a small fee up to $10 depending on what state you're in.

You can request your credit report from one of three reputable sources.

* www.equifax.com
* www.transunion.com
* www.experian.com

You can also get one from www.annualcreditreport.com, or by calling 877-322-8228.

Analyze the data

Once ...
... you have your credit report, go over it with a fine toothed comb. Places there can be errors include:

* Your personal information. Make sure your name, address, phone number and social security number are all correct.
* Out of date information. Everything that's more than seven years old shouldn't be on there anymore. Things like late payments, lawsuits, overdue child support, accounts sent to collections, paid tax liens, etcetera shouldn't be on your credit report anymore if they're more than seven years old. Additionally credit inquiries that are more than two years old shouldn't appear on your credit report, as well as bankruptcies more than ten years old.
* Inaccuracies including accounts you closed that aren't labeled as such (closed by consumer), or closed accounts that appear to be open, accounts that aren't yours, or lawsuits you weren't involved in should all be removed.

Act on incorrect data

If you find errors on any of your credit information, you then need to tell the reporting agency. Companies like Creditelves.com provide specific templates for letters to such agencies. This letter will let you detail the mistake, provide your personal information and attach any supporting documentation to prove there is in fact a mistake. This provides the agency with all the tools they need to move forward.

Once they receive your letter they have thirty days to act and notify you in writing of their decision. If you're right, and there is a mistake the agency must remove the inaccuracy or modify the report to reflect the results of the investigation. If they rule against you, you have the right to include a short statement on your credit report that explains the offending entry.

For more information on cleaning up your credit, and turning your credit score around rapidly, visit www.creditelves.com. The Creditelves have plenty of experience, tips and tricks for dealing with creditors and agencies to help you speed the normally arduous process of cleaning up your credit score.