How to Legally Clean Your Credit

The economic conditions of 2010 have helped to fuel demand for credit cleaning services. Some people experience late payments, repossessions, foreclosures and bankruptcies. These incidents can lower your credit score considerably. Good credit is important for borrowing money, applying for a job and being offered affordable insurance rates. Over time, you can legally clean up errors on your credit report and take actions to improve your credit score.

Instructions

1

Get a copy of your current credit report from all three credit reporting agencies: Experian, Equifax and TransUnion. You can obtain one free copy per year from each credit reporting agency at AnnualCreditReport.com (see the Resources section).

2

Examine your credit reports carefully. They include identifying information about you, your credit history, public records and who has requested a copy of your report, explains MSN Money. Review each record and note any items that are not accurate or are older than seven years (ten years for some bankruptcies).

3

Dispute any entry that is not true or is too old. According to the Fair Credit Reporting Act, the credit reporting agency and the business that provided the information are responsible for it's accuracy. The Federal Trade Commission (FTC) recommends that you write to the reporting agency in order to delete the information that you think is inaccurate. Include with your letter copies of all documents that support your position.

4

Wait for the agency to respond to your request. The agency will notify the information provider that you are disputing the accuracy of a reported item. The provider must investigate. If it is found that the information is inaccurate, it must be corrected. The agency will give you an updated copy of your report and, upon request, will send it to anyone who has requested your credit report within the last six months, according to the FTC.

5

Dispute the entry with the information provider. Write a letter detailing why you think that the information is inaccurate. Enclose copies of supporting documents. The provider may report to the credit agency that there is a dispute. If the information provider finds that the report is wrong, it will be corrected and not returned to your file.

6

Write a personal statement for inclusion with your credit report, if you have not been able to have an item removed. You have a right to include a 100-word statement explaining the issues that you are disputing. According to TransUnion, representatives will help you write a statement if you ask.