How to Clear Your Credit Report

Every person who has applied for and used credit has a credit report. Credit identification is based on several pieces of information, including social security number, date of birth and employment information. Credit scores are based on credit accounts (credit cards, loans), credit inquiries and collection items (overdue debts). Many credit scoring agencies score these in slightly different ways, which is why the score may differ across companies. Credit reports can often seem confusing and difficult to change; however, there are ways to not only improve, but basically clear your credit report.

Instructions

Improve Your Credit Score

1

Improve money management. Simply clearing your current credit score will not prevent credit problems in the future. Learning to manage money--which includes not purchasing frivolously or buying items on credit that may be difficult to pay back--can drastically help solve future credit issues.

2

Get a copy of your credit report. Several companies offer free credit reports. These are necessary to examine your current credit report and decide whether your score needs to be improved. This also gives you a chance to search for possible credit errors. Credit errors might occur if faulty information gets sent to the credit bureau or if credit information is entered under the wrong social security number.

3

Dispute credit errors. If you find a credit error, contact the credit reporting agency directly. Find any information that you have supporting your error claim and send the agency a detailed letter with your contact information and your dispute. You should also contact the source of the error. For instance, if a mortgage company reported a delinquent payment, find out why.

4

Lower your debt-to-income ratio. Credit scores decrease when a person owes a large amount of debt relative to her income. Credit scores also decrease when people borrow more than half of the money available on their credit line. Paying down some of these debts will increase your credit score.

5

Consider a credit cleaning company. Technically speaking, no company can instantly wipe clean blemishes on your credit. However, some companies offer services to assist you in credit cleanup. They may look over your credit report and advise you on how to increase your score. They may also assist in having credit errors removed from your credit report. However, be aware than many services offer credit clearing for a fee, but then do not actually help clean up your credit. Do your research before considering any credit assistance company.

6

Be patient. Having credit errors removed or simply improving bad credit can be a long process. In some instances, it can take years. Simply focus on lowering your debt, making payments on time and avoiding credit scams to keep the process moving.