Good Credit Score: Check Your Credit Report for Outdated Information

Many of us just skim through our credit reports primarily because we can't be bothered with reading numbers, much less analyzing them. You probably also just look at the totals or the numbers in bold and then put your credit report aside. Many people don't even bother to read their credit reports at all. This could affect your chances of getting a good credit score.

If you have that habit of just cursorily glancing at your reports without bothering to analyze them, you might be overlooking data that is preventing you from getting a better credit score. One example is outdated information - information that has gone past the required reporting period, and should by now be dropped from your credit report.

Negative information will always have the effect of bringing your good credit score down. There are two kinds of negative information you should review your credit report for: outdated negative information and negative information that doesn't belong to you.

Some examples of outdated negative information that could be yours are:

- Accounts that were charged off in the past
- Accounts that were placed for collection
- Bankruptcy filings
- Tax liens that are already paid
- Judgments that are already paid
- Overdue child support that is already paid

Under the law, these items will appear on your credit report for a specific time period starting from the date of the last activity of an account. This is sometimes called the DLA. Late payments, repossessions, charge offs, and foreclosures will remain on your credit report for seven years. If you have an unpaid judgment or lawsuit against you, this will stay on your report for seven years or longer, until the state's or federal statute of limitations runs out. Bankruptcy information stays on your report for ten years.

Then there is the negative information that is not yours. If you find any items or accounts that you don't recognize, take a closer look. It is possible that somebody else's information may have been merged with yours. Whether this information is positive or negative, you should have this removed from your report. You have no control over the other party's future payment habits and in order to protect your good credit rating, it is best to remove any information that is not your own.

If there is any information that you aren't certain is yours, you can ask your credit reporting agency to investigate it for you. If the credit reporting agency's investigation concludes that the information is correct, this will stay in your credit report.

Getting a good credit score isn't achieved by just paying on time. You need to check all avenues because one small item that you normally overlook could mean an extra five or ten points for you if this is corrected. These days, every small bit counts and when you're about to apply for a loan, a good credit rating will ensure that your loan application would be approved.

Visit our website for more tips on maintaining a good credit score and learn how to read your annual report. Our practical advice on improving your credit will help ensure that you have access to money whenever you need it.

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