MoneyLife

7 Steps To Clean Up Your Credit Report

By Lindsey Ryan

Cleaning up your credit report can be a costly venture, and it’s a major dilemma that debtors face when trying to enhance their credit report. To clean up your credit report, you must remove inaccurate and old information. 

You’ll also have to order copies of your report from the major credit reporting bureaus. To make the process a lot easier for you, we’re going to share seven steps that can assist you in cleaning up your credit report. Let’s go!

How to clean up your credit report

As we stated earlier, cleaning up your credit report means ridding your credit account of inaccurate information. Here are a few ways you can clean up credit reports!

1. Pull all 3 credit reports

The first step of cleaning up your credit report is to obtain your credit report from the three major credit reporting bureaus: Equifax, Experian, and Transunion. You can ask for one copy of your report from each agency every 12 months. Another option is to log on to AnnualCreditReport.com to get these reports for free. 

Due to COVID, the site now offers weekly credit reports through April 2022. We recommend that you obtain your credit information from all three agencies so that you have more information about your credit and a well-rounded overview about your standing. Apart from the major credit agency bureaus, there are also specialty consumer reporting agencies that offer one free annual report.

2. Scan for errors

You should carefully review the reports that are sent to you. Keep an eye out for inconsistencies and irregularities. Also, look out for incomplete information. If you discover anything of the like, create a list of every irregular detail so that you can take the next step of notifying the agencies.

3. Dispute any errors or mistakes

The easiest way to officially dispute any errors or mistakes on your credit report is to file your dispute online, particularly if the inaccurate report came from one of the three major credit reporting agencies. 

If you want to, you can also send a detailed letter to the agency. In that letter, you should detail the errors you want to dispute and why you believe they are errors in the first place. You’ll have to send the letter directly to the agency, and it’s encouraged that you include documents in support of your dispute.

4. Ask debtors to lower your balance

If you have a debt that is past due, you can get your creditor to remove it. In cases where your past-due account is found on your report, sending a letter to your lender may help solve the problem.

However, the odds of this working in your favor are higher if you rarely request to default. The creditor is under no obligation to forgive your debts, but they might consider it if you ask professionally, respectfully, and kindly.

5. If your dispute was denied, take action

There are situations in which your dispute claims will be denied. When this happens, take it up with the Federal Trade Commission or the Consumer Financial Protection Bureaus. Here are steps you can take to do this:

  • Log on to the website and submit your complaint.
  • Your complaint will be received and forwarded to the agency.
  • The company will either accept the complaint and respond to you within fifteen days or they will deny your dispute in no more than 60 days.
  • Information about your complaint will be uploaded to the public consumer complaint database. With your consent, a description of your complaint will also be uploaded to the database. Personal details will be removed from the description on the database so your dispute won’t be identifiable.

6. Make a plan to pay off debt

Draw up a plan to pay off your debt. Start with the most delinquent debts and work your way down. Understand that your credit cannot improve until you begin paying your bills on time. One disadvantage you will encounter is that you will not necessarily get credit for monthly bills paid. Read this article to learn how to pay off debt faster

Banking with RoarMoney®️ 

The MoneyLion RoarMoney account is a sure way to manage your finances. Track, manage, and plan out your finances using the Financial Heartbeat feature on your RoarMoney account. You can either use RoarMoney solely as a bank account or take advantage of every feature, like the ability to invest or engage in lending opportunities.

Consolidate debt

If your credit standing isn’t at risk of danger by opening a new credit line, you should consolidate your debt. This feature is not for everybody, as only those with fairly comfortable credit standing are eligible.

Overdraft refunds

With Cushion, you can get a refund for your overdraft fee. Here’s how:

  • Connect with your bank and select a negotiation package.
  • Cushion will negotiate the fee on your behalf. 
  • Within 2-90 days, depending on the bank’s process, your overdraft will be refunded to you.

0% APR Instacash

If you want to pay off your debts, take advantage of the advance payments offered by MoneyLion Instacash®️ . This can be possible before your next paycheck comes in. With 0% APR, you will not pay interest on your transactions, leaving you with extra money that most companies would take from you.

Credit builder loan

If you’re in search of an affordable loan option, look no further! The MoneyLion Credit Builder loan is the answer. With our Credit Builder loan®️ , you can improve your credit standing in one year. Our same-day cash option and no interest on credit reserve funds will set you on the course to both cleanup and enhance your credit.

As a last resort, pay up 

If none of these options work for you, try paying your debts. One way to do this is to request the “pay for delete” option from your creditors. This is risky, as fees can reach up to $500. Start by offering 10% of the fee to see if your creditor will work with you and make an exception.

Grow your finances with a MoneyLion Investment Account 

When you clean up your credit, the amount of debt you owe will go down, as will the interest rates on your account. Using spare funds, you can grow your finances with a fully-managed MoneyLion Investment Account

For only $1 per month, you’ll have access to free withdrawals, no low amount limits, and full management of your account. With MoneyLion, you can rest assured that your financial situation will improve significantly.

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