A credit report with inaccuracies or errors can be a major threat for your financial stability. How? Getting approval for loan application will be tough, you can face denial for house rent, cracking a good job will be tough, home loan application will be denied or so many things can happen to you because of a bad credit report.
In this situation, only cleaning of your credit report can help you in getting rid of these problems. A clean credit report not only boosts your credit score, it increases the chances of getting a good job, a good home at rent and a good amount of loan with low interest rates.
Why Your Credit Report Matters?
A credit report resembles the history of a borrower regarding repayment and credit management capabilities. Lenders check credit reports to decide whether the person is a responsible borrower or not and what will be the interest rates for that particular person.
If the lenders find that the credit report contains missed payment or any other inaccuracies, they consider the borrower as a high-risk profile. As a result they refuse to approve the loan application.
The inaccuracies that are hurting your credit history include fake account or duplicate account, wrong information, missed payment, late payment, charge offs etc.
Steps that you can follow to clean up your credit report are;
Step One: Get Your Credit Report
Download a free copy of your credit reports from the three major bureaus; Experian, Equifax, and TransUnion at AnnualCreditReport.com. You can download a free copy once a year.
Step Two: Identify the Errors
Find out the errors or inaccuracies from your report. Errors or inaccuracies include;
- Accounts you don’t recognize
- Payments that you paid on time but marked late
- Inaccurate balances
- Duplicate accounts
- Charge offs
- Payments that you paid but marked as missed. Etc.
Step Three: Dispute the Errors
After finding the errors, dispute them with the credit bureaus as soon as possible. Include the proper supporting documents to prove your claim. According to the Fair Credit Reporting Act (FCRA), you have the right to dispute the errors on your credit report. If your claim is verified, it must be removed.
Step Four: Maintain a Good Credit Behaviour
There are many things that can hurt your credit score, even if you have a clean credit report. So, you need to build good credit maintenance behaviour including;
- Pay timely on every month
- Keep your credit balance below 30% of your credit limit.
- Don’t apply for new credit while rebuilding the existing one.
Keep open your old account for showing a long credit history.
Step Five: Hire a Credit Repair Expert
If you find it difficult to repair your credit by yourself, feel free to hire a credit repair expert.
Whether you live in Florida, New Jersey, California, Pennsylvania, or Virginia, an experienced team of the Great American Credit Repair will guide you in completing the credit rebuilding process with legal activities.