Sunday, June 23, 2013

How Do Deleted Items Affect My Credit Score?

How Do Deleted Items Affect My Credit Score?

Repairing your credit history can be a lengthy process. Your ability to buy a house or get a low interest rate depends on your credit score. Your credit score is impacted by payment history, debt-to-income ratio and other factors. Deleting any of these factors can change your credit score. Here are a few of the deletions that can improve your credit--and a few that can hurt your score.

Facts

    The Fair Credit Report Act (FCRA) was created to ensure that account information is reported accurately, and provides consumers with legal rights to sue for any FCRA violations (see Resources).

Personal Information

    Debt collectors can use personal information to validate accounts. Deleting incorrect addresses or name misspellings can help delete erroneous accounts on your credit report.

Inquiries

    Excessive inquiries can lower your credit score and impede your ability to obtain credit. Dispute unauthorized inquiries and request deletions to improve your credit rating.

Negative Accounts

    Removing negative accounts can raise credit scores by 10 to 15 points.

Closed Accounts

    Deleting closed accounts with good payment history can decrease your credit score, as the length of your credit history counts for 15 percent of your credit score.

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