How to Clean Up Your Credit Report?

credit report check

A good credit score is essential to have a creditworthy for the future.

Review your Credit Report

Reviewing your credit score is one of the essential steps in terms of cleaning up your credit report. You can get free copies from all the three authorized bodies such as Equifax, CIBIL, and Experian. You must do this at least two times a year. Check every section thoroughly so that there is no error in data.

Correction in Delinquency

Delinquency generally takes place when you don’t pay towards your loans on time. You must check your loan or payment, which is due for more than 60 or 90 days. As this is the time when your debt has not become a charged off account or collection debt. Try to repay these debts first as soon as possible. There are some chances that you might not be able to pay them on time or need more time for it. You can ask your lender to give you more time so that you can pay him.

Correct the Charge-offs

Correcting the Charge-offs in the credit report is also possible. Contact your creditor and ask them for settlement, you can do this even on call or by sending them mail. However, apart from all these, the most effective one is by meeting them. If you get successful in this, it is crucial to get a proof of settlement in written along with the signatures of lender and borrower. It becomes a critical part to file a dispute with the credit reporting agency. Provide the proof of payment i.e., the documents and settlement letter. All this can remove your charge-off.

Correction in Collection Accounts

These are the account which is handed over to the recovery agencies for debt clearance. In this case, none of the agencies have an interest in settlement. They want to collect the money. There is little hope for a settlement.

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