Cleaning Up Your Credit Report

The growing importance of credit scoring and the rise of potentially costly identity theft mean most consumers should review their official credit reports at least annually. Here's how to do it:

1. Purchase a copy of your credit report: All three major credit bureaus offer reports to consumers for about $8. Most West Coast lenders use Experian at (888) 397-3742; you can also order online at http://www.experian.com. The other bureaus are Trans Union at (800) 916-8800 or http://www.transunion.com and Equifax at (800) 685-1111 or http://www.equifax.com. In addition, several Internet vendors sell access to credit reports online.

2. Check for errors: Make sure each aspect of the report is accurate, from names and addresses listed to the details of your credit account histories. Refer to the information provided with your report to interpret the data. Inaccurate information or listings of credit inquiries that you didn't authorize might be clues that someone has stolen your credit identity.

3. Check for out-of-date information: Most negative items--late payments, collections, liens--must be removed after seven years. A bankruptcy can remain on a credit record for 10 years.

4. Check for omissions: If you are trying to build a positive credit history, you'll want to make sure all your accounts and on-time payments are included in your credit file.

5. Request corrections if necessary: Write to the credit bureau requesting corrections of erroneous or out-of-date information, or to ask that missing accounts be added. Include your name, address, phone number and Social Security number along with details of the incorrect or missing information, including lender name, phone number and the account number.

Ask the bureau to send you another copy of your report once their investigation has been completed.