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Credit clean upA person\'s credit report can affect the quality of his life significantly. If the FICO score is low then, the consumer would have a hard time getting credit, tenancy, mortgage loans and even employment. A consumer with a high FICO score would not have to face such problems. Prior to applying for a loan or a credit card or change of job , a consumer has to clean up his credit.
To clean up the credit , the consumer would need to get a copy of his credit report from the three major credit reporting agencies: Trans Union, Equifax, and Experian. The consumer is authorized to get a copy free from these credit reporting bureaus once in 12 months. However, he may be able to receive a free copy if a negative item has been added to his credit report or if he has been denied loan or tenancy on the basis of his credit report.
How To Do Credit Clean-Up
If an applicant or the consumer finds the items on the credit report inaccurate, he has to write to the credit bureau who provided the report. The clean-up is done through contesting information and a lot of letter writing. The consumer has to send the proofs to claim that the report is inaccurate. When the consumer disputes the information, the credit agency/bureau goes to the credit company to request proof of their claim. They would be given a period of 30 days to provide the information. If the credit company is unable to provide the information or proof then the item is removed from the report. However, if the creditor can prove its claim regardless on the allotted time period, then the item will remain in the credit report.
If the consumer has maintained a good standing with the creditor ,then he can write to the creditor to remove the negative item from the credit report. However, if the company is ready to remove the negative item , the penance has the limited sentence. Cleaning up one\'s credit report takes a lot of persistence. If the consumer does not get the desired response , he needs to send letter to the credit agency restating his claim or request. The consumer has to repeat this process several times before he gets a satisfactory response. There are companies who offer service to lean-up the credit services. This service is used by consumers or applicants who do not want to go through the process of disputing their credit reports.
To Summarize The Credit Clean-Up
The credit report and the clean-up mechanism differ from country to country. However, if a consumer wants to clean-up the credit report , the first step he needs to take is to stop applying for the credit cards or loans. The reason is if one company rejects the application there is a possibility that other companies may also follow the same footsteps. Too many declined applications can give a negative look to the report. It is always important to keep a careful watch on one's credit reports form all the three credit agencies. Such awareness can help to prevent credit fraud. If the consumer is a victim of identity theft, then he can write to the credit bureaus and request them to place fraud alerts. With the proper awareness and a little patience, one can easily clean up their credit report
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