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Clean Credit Report – How to Clean Credit Report in Less Than a Month

There are different ways to clean credit report. According to the mainstream credit advisers fixing credit takes financial effort, careful budget planning, perseverance and most importantly -time. The popular formula has proven to raise credit score in the long run. However,there is one significant problem with this recipe for credit success-TIME is luxury that not everybody can afford. Most of us want to take advantage of the fantastic housing market, favorable auto or business loan NOW and not later. And this is where little known shortcuts and credit secrets come into play.

Here are 3 tips that will help you clean up your credit report in a short period of time

1 Know your enemy.

Your three digit FICO score measures your ability to repay a loan. It determines if you will be labeled “reliable” or “risky” by creditors. However, knowing only your score is not enough if you want to come up with a winning credit repair strategy. Order a copy of your credit report from the three major credit bureaus. Don’t assume that the information provided by the bureaus is identical. Since different creditors report to different bureaus, there might be significant differences in the reports. Once you have your credit report, examine it carefully. Look for any out-of-date and incorrect information. Out-of-date information includes adverse info that is more than 7 years old (late payments,collection accounts, tax liens, lawsuits, judgments etc), bankruptcies reported more than 10 years after the date of the last activity, credit inquiries ( requests by companies for a copy of your credit report) that are more than 2 years old. Inaccurate information on your report includes incorrect personal information (name, address, phone number, date of birth, SSN, employment info), accounts that are not yours or lawsuits in which you were not involved, incorrect account history, closed accounts that are listed as open etc.

2 Dispute, dispute, dispute.

Once you identify out-of-date or inaccurate information, start disputing. Under FCRA both the consumer reporting companies and the information provider (that is the person, company or organization that provided the info about you to the credit bureaus) are responsible for correcting any inaccurate or incomplete information in your file. If you are right or if the creditor who provided the negative info about you can no longer verify it, then the credit bureau should remove the item.

3 The paradoxes in the credit world.

There are many little known paradoxes in the credit world. The more you know about them, the better your chances to achieve fast credit repair. In theory negative items are supposed to fall off from your credit after 7 years. However, some of your debt might get sold to various collection agencies and may be illegally reposted to your account as new bad debt on the sale date of the debt to the collector. In such cases old debt can be “updated” and continue to have damaging effect on your credit score. Another paradox is the collection debt. Paying off an old collection account can actually lower your score.Why? Because now the account is updated to “current”. The negative item (albeit paid) will continue to lower your score because of its current status. Another interesting paradox are the “paid off” vs “deleted” account. Paying off a negative account in full might not have the beneficial effect you expect. On the other hand, deleting the account from your record will always boost your credit. How do you do that? Simply negotiate with the collection agency that you will pay things off ONLY if they agree the delete the account from your record.

There are many little known secrets than can help you clean credit report in no time. The only thing you need in order to achieve the desired results is knowledge about the loopholes and the shortcuts in the system.

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