Clean Up Your Credit Reports For A Better Credit Score

Credit has an impact on many areas of your life, especially when it comes to major purchases like a house or a car. Due to the high cost of these big ticket items, most people need a loan to get them. This is where credit comes in. The better your credit rating, the better your chances of getting a good deal on finance. Here’s how to clean up your credit reports to improve your credit score so you can get a better loan.

Better auto loans with better credit

When you have bad credit and need a car loan, you always have a good chance of getting a loan from a group of lenders called subprime lenders. These lenders work through special finance dealers to bring credit distressed consumers into vehicles.

Just because you can get a car loan with bad credit, doesn’t mean you shouldn’t strive for the best credit possible. There are several ways to easily improve your credit score, and one of them is to clean up your credit reports.

In order to know what can be cleaned from your credit reports, you must first know what they contain. The most effective way to track this is to monitor your credit reports throughout the year.

You can do this for free by visiting www.annualcreditreport.com to receive a copy of your credit reports. You are entitled to one free copy every 12 months from TransUnion, Equifax and Experian, the three national credit bureaus.

How to review your credit reports

Do you know what should appear on your credit reports? Even though credit is something that affects most people, not everyone knows exactly how it works. Your credit reports are an overview of your credit accounts, showing how you have handled credit both now and in the past. If you have a history of late or missing payments, a past bankruptcy, or a previous repossession, these may show up on your credit reports.

Don’t worry, it’s not just bad credit that’s showing up; your on-time payments and repaid loans usually also appear. Since credit reports are designed to give lenders a holistic view of how you handle things, good and bad credit accounts stay on your reports for up to seven or ten years.

Once you have received a copy of your reports, you should go through them carefully, checking for errors and accounts that should not be there. Sometimes an old account isn’t deleted after seven years, or an overdue account that you dealt with doesn’t show up as paid. Other times you may find fraudulent entries that you don’t recognize, or just errors where something is mistakenly reported.

All of these can negatively impact your credit score, and removing them can improve your credit score.

Remove items from your credit reports

When you have items on your reports that you want to delete, it’s going to take a bit of work. According to the legal website Nolo.com, credit bureaus have 30 to 45 days to respond to a request about an item on your credit report.

Once you dispute an article, the credit bureau should investigate and either remove it or let you know that the information is correct. If you dispute information but it is not corrected, you may need to take further action when you know it is inaccurate.

If this is a collection account, you may need to call both the collection agency and the original creditor to have the account deleted. Be prepared to show convincing evidence as to why you think the article in question is wrong.

Another action you can take is a creditor letter writing campaign. When you officially write and request that a certain entry be removed from your credit reports, the creditor may agree that the item is wrong and send you a letter saying so. You can then send a copy of this letter to the credit reporting agency so that they can correct the error.

All of these steps can be effective, but they are also time consuming. While you can do all of these things yourself for free, you can also have someone else do the work for you.

Improve Your Credit Score With A Credit Repair Service

If you notice that things need to change on your credit reports, but you’re not sure you have the time or patience for the calls and letters that need to be made, you can seek help from a credit repair service.

Our trust credit repair consulting partner can help you take charge of your situation. This service can reduce the stress and hassle of communicating with your creditors by helping you with the process.

Build your credit with an auto loan

Another way to help you repair your credit is with an auto loan. If you qualify for a bad credit car loan and regularly make payments on time, you can increase your credit score. Then you put yourself in a better position for better loan terms the next time around.

TO Auto Express Credit, we want to help you find the right dealership for your next car loan. We work with a nationwide network of special finance dealers who can help borrowers with less than perfect credit. Connect to one near you by filling out our free and easy form car loan application form now.

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