Unbeknownst to many, your credit score, which is a three-digit number that lenders use to assess your credit health, might be a lot more significant than you might think. After all, you normally need strong credit to rent an apartment or get approved for a rewards credit card, and employers may inquire about your credit reports before hiring you for a position. A high credit score can help you qualify for the finest car loans or mortgages, while a low credit score can prohibit you from being approved at all.
Fortunately, there are established procedures to follow if you wish to maintain a high credit score. For instance, keeping your credit usage low and paying all of your payments on time may both significantly contribute to you developing the credit you'll need in the future. In the meanwhile, you should also review your credit reports for inaccuracies and erroneous information, both of which might adversely affect your score without your knowledge.
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| How to Get Negative Items Removed from Your Credit Reports |
Just keep in mind that getting bad things off your credit reports only works if they are untrue. The CFPB expressly notes this on their website:
The majority of bad information will stay on your credit reports for seven years, they write, adding that you "usually cannot get unfavorable but correct information deleted from your credit report."
How to Calculate Credit Scores
You should be aware of how credit scores are determined in general in addition to monitoring your credit reports for mistakes. It's likely that you also have further queries that need to be addressed.
What is a decent credit score, for instance? What exactly is a poor credit score?
First of all, you should be aware that FICO scoring is the most significant credit scoring model. VantageScore is the second most used credit scoring methodology at the moment.
90% of reputable lenders utilize FICO credit scores, thus for the sake of this article, we'll concentrate on this form of credit score. FICO credit ratings range from 300 to 850, similar to VantageScore, with higher scores being preferable over lower ones.
FICO credit ratings are divided into the following ranges, according to myFICO.com:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 559
- Poor: 580 or less
You should be aware that, according to Experian's study, the average FICO score was 714 as of late 2021 if you're unsure of your current situation. This indicates that the majority of American customers currently have what is regarded as a "good" credit score.
How to Proceed If You Discover an Error in Your Reports
You should ensure that you review your credit reports from all three credit agencies, Experian, Equifax, and TransUnion, at least a few times year, to maintain your credit score in the best possible form. By doing this, you can identify errors, misleading reporting, and discrepancies in your credit reports. Checking your credit reports is one approach to identify identity theft early on, according to the Federal Trade Commission (FTC).
Use the website AnnualCreditReport.com to view your credit reports from all three bureaus. You may access this site to check all of your credit reports for no cost, up to once every week, and you can do it all online.
How to Challenge Adverse Information on Your Credit Reports
You should take action to get any inaccuracies removed from your credit reports if you discover any, especially if they might be harming your score. Just keep in mind that removing unfavorable reporting from your reports will only be successful if the information is in fact false.
According to the FTC, you must raise any inaccurate reporting with both the firm that provided the data and the credit bureaus that are reporting it. You would need to dispute the information with both Experian and Wells Fargo if, for instance, your Experian credit report indicates a late payment on your Wells Fargo auto payment. On the other hand, you would have to provide the identical information to Experian, Equifax, TransUnion, and Wells Fargo if the erroneous information appeared on all three of your credit reports.
The steps you must follow in order to contest information on your credit reports are as follows:
- Write down what you believe is inaccurate on your credit reports and why you believe it is incorrect.
- Print up copies of your credit reports and include them with your letter. Be careful to mark any inaccurate information with a highlighter or a circle.
- Include any documentation you have that demonstrates the accuracy of the information, such as a bill proving the payment of any outstanding balances or an account closure statement.
- Ask in writing for the removal or updating of the false information you are referencing.
- When contacting each business, make sure to include current contact information for yourself, such as your name, address, and phone number.
Keep in mind that you can compile a single packet of this data and submit it both to the reporting firm and the credit bureaus. Credit bureaus do, on occasion, have their own dispute forms that you can submit.
Make sure to transmit the material for your dispute by certified mail if you are not contesting anything on your credit reports online.
In any case, you should use the details below to submit the information to the relevant credit bureau, and you may also use the address shown on your credit report to send the information directly to the reporting firm.
Information about credit bureau disputes
| Credit Bureau Web Page | Addresses for Disputes by Mail | Phone Number |
| Experian | Mail the dispute form with your letter to: ExperianP.O. Box 4500Allen, TX 75013 | (888) 397-3742 |
| Equifax | Download the dispute form Mail the dispute form with your letter to: Equifax Information Services LLCP.O. Box 740256Atlanta, GA 30348 | (866) 349-5191 |
| TransUnion | Download the dispute form Mail the dispute form with your letter to: TransUnion LLCConsumer Dispute CenterP.O. Box 2000Chester, PA 19016 | (888) 397-3742 |
It's also important to note that the top credit repair businesses may do this task for you if it all seems daunting. These businesses may not only carefully review your credit reports to look for mistakes, but they can also contest mistakes and misreporting on your behalf.
As an illustration, Lexington Law charges fair rates in exchange for managing all facets of credit restoration, such as challenging inaccurate information on your credit reports and managing bankruptcies, collections, foreclosures, and more. Additionally, the business enables you to finish the full procedure over the phone and online, saving you the time and hassle of having to travel to a credit repair center.
The Most Harmful Common Credit Report Errors and Entries
Almost everything on your credit report might be incorrect, but according to the Consumer Financial Protection Bureau (CFPB), the following mistakes are some of the most frequent:
- incorrect contact information or a name
- accounts that are incorrect because to identity theft
- Open accounts that have been closed
- Falsely reported late or delinquent accounts Incorrect latest payment dates
- Multiple debt listings Incorrect balances
- unreliable credit reports
- Inaccurate credit limit accounts
You may completely eliminate any negative effects on your credit score caused by any of these inaccuracies by taking action to challenge inaccurate information. This is a step you should make at least a few times a year if you've been wondering how to raise your credit score.
Last Words on Getting Bad Items Off Your Credit
You should be sure to check your credit reports every few months if you want to raise your credit score and get eligible for the greatest personal loans, credit cards, and mortgages. By doing this, you can find mistakes before they do significant harm and identify identity theft at its earliest stages.
Simply said, there are no drawbacks to free credit report checks and challenging erroneous information. But if you don't, you could come to regret it later.
