5 ways to spring clean your credit report

5 Ways to Spring Clean Your Credit Report

Credit Repair

What are credit score based on?

#1- Do one scan for flat-out errors.

By law a copy of your credit report must be provided to you once a year as well as anytime you are not approved for credit.

Go to AnnualCreditReport.com and order your credit reports from all three reporting bureaus: Experian, Equifax and TransUnion. Look for accounts that aren’t yours,

that have long been closed or otherwise are erroneously reported

#2- Do a scan for reporting inaccuracies

Delinquencies should age entirely off your report after 7 years bankruptcies after 10.

In particular, you’re looking for things like: delinquencies that should have aged off balances listed as higher than they truly

are limits listed as lower than they really are short sales/foreclosures that are

improperly dated, among other things.

#3- Dispute report errors

By law creditors must respond to disputes within 30 days.

Follow the instructions on the reports to dispute such report errors immediately online on the phone and in writing.

#4- Pay the right things off BUT…

…take care not to pay off accounts you need to show your responsible use of credit.

• accounts in collections• state and federal tax liens• past home loans or lines of credit in default that not extinguished through foreclosure (e.g., second loans, home equity lines of credit, etc.)• defaulted federal student loans (for FHA loan

applicants).

#5- Create a plan

Real debt help is found only in changing your behavior.

Analyze your income versus your debt. Create a budget and a timeline of

how you will pay off your debt Take settlement offers IF… Consider taking care of the higher

interest loans first

Questions?

Resources

Learnvest.com

Frugalgirl.com

Frugalliving.about.com

www.oswego.edu/about/centers/obcr.html

Office of Business and Community Relations Initiative