Having a clean credit report is one of the best ways to save a lot of money when it comes time to get a mortgage or a car loan. Below you will find information on how to clean your credit report.

Out-of-Date Information

The first step on the road to clean up credit report information is to actually get a credit report. You will need to make sure that everything is up to date. Make a list of any items in the report that are not up to date. None of the following information should be in your credit report:

• Any information that is more than 7 years old, lawsuits, paid tax liens, accounts that are sent to collections, criminal records, overdue child support, and late payments.

• Bankruptcies that are reported more than 10 years after the event took place.

• Credit inquires that are more than 2 years old.

Inaccurate Information

The next thing you should keep an eye out for is information in your report that is not accurate. Look for:

• Incorrect name, phone number, address, SSN, employment.

• Bankruptcies that are not identified by their unique chapter number.

• Any account that has been closed and does not say, “closed by consumer”.

Incorrect account histories, such as a history of payments that are not made on time.

Request Removal of Bad Information

The next step is to call the credit bureau and file a report with them. You will need to make a list of each incorrect or out of date item. You will also need to have an explanation of what is wrong. It will usually take 30 days from the request for the bureau to review your case. If you say that you are trying to get a mortgage or a car loan, the bureau will often times rush the investigation.

If it turns out that you are right and the creditor was wrong, the bureau will remove the incorrect information on your report. Sometimes a credit bureau will remove the item without a formal investigation if it is not worth it to conduct an investigation.

What to Do If the Credit Bureau Disagrees

If you contact the credit bureau and they say there is a problem, then you will need to contact your creditor. Talk to the customer service department and see if they will call the bureau to remove the information and help you get a clean credit report.

By law, a creditor cannot ignore information that they know to be false in their files.

How to Rebuild Your Credit

After you have a clear credit report, you need to work to rebuild your credit. You will need to get a new credit card. If your credit score is too low to qualify for a credit card then you will need to look at a secured credit card. After you have proven yourself by paying on time for at least 6 months you will be able to get a regular credit card.

It can take up to two years to rebuild your credit so it is important to have patience. After 4 years of credit rebuilding you should be able to qualify for a mortgage.