Clean up your credit report

PORTSMOUTH, Va. (WAVY) - Fall represents the season to settle in and prepare for the cooler weather ahead. As you clean out those closets to replace your wardrobe with warmer clothes, think about cleaning up your credit report as well.

There are several key reasons that you want to make sure your credit report is correct:

Ensure there are no surprises on your credit report which could negatively impact you financially. Can you imagine preparing to refinance your mortgage or purchase a car with the best possible interest rate and you find out something is not correct on your credit report?  Perhaps you were screened out of a great job opportunity because of what a potential employer saw in your credit report or your auto insurance increases as a result of the same thing. 

Studies have shown that over 50 percent of credit reports contained inaccuracies.  Since decisions are made by lenders, insurance companies and employers based on information in your credit  report you want to make sure it is accurate.

Detect and Deter Identify Theft.  The fastest white collar crime today is Identity Theft when someone steals your identity to commit fraud or other crimes.  By reviewing your credit report you can determine if your personal information has been comprised. Red flags would include inquiries from companies that you did not initiate, addresses listed where you never lived and accounts you never opened.

How do I get that free copy of my credit report? 

The law requires that the major credit reporting agencies Equifax, TransUnion and Experian provide you with a free copy of your credit report once a year if you request it: visit www.AnnualCreditReport.com

How do I dispute information that I don't agree with on my credit report? -

First order the free copy of your credit report (you must have your copy in order to initiate a dispute). If you detect any errors (you paid a loan off and the creditor shows that it is open, you paid off a past due debt and your report shows that you still owe the money) initiate a dispute with the credit reporting agencies (on-line, by phone or in writing) stating that the information is not correct.

The credit reporting agency has 30 to 45 days to investigate the dispute by contacting the creditor  for verification and informing you of the results as follows:

• The creditor confirms the information reported was inaccurate. They make the correction to your credit file. You are issued an updated accurate credit report. Example: Account now shows paid. Dispute resolved.
• They creditor states the information is correct. The information stays on the credit file. You can place a statement of dispute on your credit file and attempt to resolve it directly with the creditor.
• Accurate negative information will only be removed with the passage of time. It is required by law to be removed from the credit report generally after 7 years (10 years for Chapter 7 bankruptcy).

What tips can I implement to improve my credit report? How can I improve my credit score?  

Pay your bills on time - use bill pay and pay a couple of days in advance.

Don't max out your credit cards.

Borrow money only when you need it.

Develop an effective budget

Cleaning up your credit report is a great way ultimately  save money on loans with lower interest rates, pay less in insurance and perhaps increase your earnings potential with a higher paying job.

For more information visit any of the 15 BayPort Credit Union locations across Hampton Roads just  log on to BayPortCU.org