In “My first steps toward financial security“, I showed you the first few steps I took on my mission to financial security. In this post I provide you with the knowledge needed to review and correct any errors in your credit report. Taking these steps, will boost your credit rating and ultimately save you money!
1. Names: Review all names associated with your report. If you do not recognize a name or the name is misspelled contact the credit bureau and have it corrected or deleted immediately. An erroneous name can be a simple misspelling or an attempt by another individual to apply for credit in your name, in the end both can cause problems.
2. Home Address: Review all addresses on file. If you do not recognize an address, contact the credit bureau and have it removed. An incorrect address, just like an unknown name, can be signs that an address was incorrectly entered or an attempt by another individual to apply for credit in your name. I will speak a bit more on this topic in a future post.
3. Dates:Dates are very important. Each states has different guidelines on dates. In my post I will discuss NY dates, however, below you can view dates for individual states. I obtained the chart from bankrate.com.
(a) Inquiries can be removed after 2 years. If you find an inquiry which has been on your report longer, have it removed. Removing the item will give your credit score a boost.
(b) Late fees can be removed after six years. If you find a late fee that is set to expire, contact the credit bureau and have it removed. Removing the item will give your credit score a boost.
(c) *Collections and charge offs can remain on your report for six years. If you find an item that is older than six years, contact the credit bureau and have them remove the collection/charge off. Removing the item will give your credit score an immediate boost.
4. Remove accounts that are over 10 years old (not recommended for everyone): I needed to do this because I had more than 25 credit card accounts, as well as student loans, a mortgage and a car note. When I obtained my credit score, the three bureaus stated that the score was lowered because of the number of accounts I had available, as well as the total amount of credit available to me. However, you should not remove accounts if you do not have as many as I did, as it will lower your credit score. Also, note, decreasing the amount of credit available to you, without decreasing the amount of debt owed, will definitely cause your score to lower.
*NOTE: When challenging a collection do not admit to any charge until you have requested visual proof. Once you admit that a charge is yours, you will not be able to remove it and the clock will start ticking anew.
Per Bankrate.com:
Once a debt passes beyond the statute of limitation in your state, a debt collector no longer has the right to sue you for payment. You may still have a moral obligation to pay back an old, forgotten debt, but you can’t be sued over it.
| Statutes of limitations for each state: |
|
State
|
Written contracts | Oral contracts | Promissory notes | Open accounts (including credit cards) |
| Alabama |
6 years
|
6 years
|
6 years
|
3 years
|
| Alaska |
6
|
6
|
6
|
6
|
| Arizona |
6
|
3
|
5
|
3
|
| Arkansas |
6
|
3
|
5
|
3
|
| California |
4
|
2
|
4
|
4
|
| Colorado |
6
|
6
|
6
|
6
|
| Connecticut |
6
|
3
|
6
|
6
|
| Delaware |
3
|
3
|
6
|
3
|
| D.C. |
3
|
3
|
3
|
3
|
| Florida |
5
|
4
|
5
|
4
|
| Georgia |
6
|
4
|
6
|
4
|
| Hawaii |
6
|
6
|
6
|
6
|
| Idaho |
5
|
4
|
10
|
4
|
| Illinois |
10
|
5
|
6
|
5
|
| Indiana |
10
|
6
|
10
|
6
|
| Iowa |
10
|
5
|
5
|
5
|
| Kansas |
5
|
3
|
5
|
3
|
| Kentucky |
15
|
5
|
15**
|
5
|
| Louisiana |
10
|
10
|
10
|
3
|
| Maine + |
6
|
6
|
6
|
6
|
| Maryland |
3
|
3
|
6
|
3
|
| Massachusetts + |
6
|
6
|
6
|
6
|
| Michigan |
6
|
6
|
6
|
6
|
| Minnesotta |
6
|
6
|
6
|
6
|
| Mississippi |
3
|
3
|
3
|
3
|
| Missouri |
10
|
5
|
10
|
5
|
| Montana |
8
|
5
|
8
|
5
|
| Nebraska |
5
|
4
|
6
|
4
|
| Nevada |
6
|
4
|
3
|
4
|
| New Hampshire |
3
|
3
|
6
|
3
|
| New Jersey |
6
|
6
|
6
|
6
|
| New Mexico |
6
|
4
|
6
|
4
|
| New York |
6
|
6
|
6
|
6
|
| North Carolina |
3
|
3
|
5
|
3
|
| North Dakota |
6
|
6
|
6
|
6
|
| Ohio |
15
|
6
|
15
|
6
|
| Oklahoma |
5
|
3
|
5
|
3
|
| Oregon |
6
|
6
|
6
|
6
|
| Pennyslvania |
6
|
4
|
4
|
6
|
| Rhode Island |
15
|
15
|
10
|
10
|
| South Carolina |
10
|
10
|
3
|
3
|
| South Dakota |
6
|
6
|
6
|
6
|
| Tennessee |
6
|
6
|
6
|
6
|
| Texas |
4
|
4
|
4
|
4
|
| Utah |
6
|
4
|
6
|
4
|
| Vermont |
6
|
6
|
6***
|
6
|
| Virginia |
5
|
3
|
6
|
3
|
| Washington |
6
|
3
|
6
|
3
|
| West Virginia |
10
|
5
|
6
|
5
|
| Wisconsin |
6
|
6
|
10
|
6
|
| Wyoming |
10
|
8
|
10
|
8
|
| * Six years if contract is for payment of money. ** Five years if promissory note is added to a bill of sale. + The applicable statue of limitations in Maine and Massachusetts on a debt owed to a bank or on a promissory note signed before a witness is 20 years. (Me. Rev. Stat. Ann. Tit.14, s 751; Mass. Gen. Laws ch. 260, s 1.) *** Vermont’s statue of limitations on a promissory note signed before a witness is 14 years. Source: Bankrate.com |
||||
To read more on individual state Statutes of Limitations (Date Guidelines), click HERE and HERE. When contacting the credit bureaus, be prepared and informed. Know your rights as a borrower and your individual state’s statutes, then use it to empower yourself!
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