In today's real estate market, it is more difficult than ever to qualify for a home loan. With delinquencies on the rise, your credit score needs to be good, if not stellar, for lenders to say yes.
Very few people understand everything they need to about credit. Even people with excellent credit are confused about exactly how credit works!
First, we will answer the most basic question of all. What precisely is a credit bureau?
A credit bureau is a huge repository that stores date on most Americans. This information includes names, social security numbers, addresses, employment and, of course, credit history.
People often believe that when something is incorrect in there credit file, that the credit bureau has caused this.
This is not true! Your lender is the one reporting incorrectly.
The credit agencies collect data, but they do not confirm that anything they report is accurate. They simply report the information given to them by the creditor. Unfortunately, this means that that the lender can report anything regardless of whether or not it is true.
People across the United States find false information in their credit bureaus every year. The damages caused by these errors can range from paying higher interest, credit denial and lost employment opportunities.
Without your participation, your credit file is a compilation of unverified data. Fortunately, the government has numerous consumer protection laws in place.
The most important of these to understand is that the only time the data in your credit bureau is confirmed is if you file a dispute with each of the three credit bureaus.
When a credit dispute is filed, it is up to the lender to prove that the item they are reporting is accurate within 30 days. If they do not do this, the credit bureau is required by law to delete the information from your report.
There are many keys to maintaining a high credit score. One of the most important is consumer knowledge and active involvement in monitoring your score.
Very few people understand everything they need to about credit. Even people with excellent credit are confused about exactly how credit works!
First, we will answer the most basic question of all. What precisely is a credit bureau?
A credit bureau is a huge repository that stores date on most Americans. This information includes names, social security numbers, addresses, employment and, of course, credit history.
People often believe that when something is incorrect in there credit file, that the credit bureau has caused this.
This is not true! Your lender is the one reporting incorrectly.
The credit agencies collect data, but they do not confirm that anything they report is accurate. They simply report the information given to them by the creditor. Unfortunately, this means that that the lender can report anything regardless of whether or not it is true.
People across the United States find false information in their credit bureaus every year. The damages caused by these errors can range from paying higher interest, credit denial and lost employment opportunities.
Without your participation, your credit file is a compilation of unverified data. Fortunately, the government has numerous consumer protection laws in place.
The most important of these to understand is that the only time the data in your credit bureau is confirmed is if you file a dispute with each of the three credit bureaus.
When a credit dispute is filed, it is up to the lender to prove that the item they are reporting is accurate within 30 days. If they do not do this, the credit bureau is required by law to delete the information from your report.
There are many keys to maintaining a high credit score. One of the most important is consumer knowledge and active involvement in monitoring your score.
About the Author:
Vincent Polisi is owner of Finance the Dream. Finance the Dream is the nations top Rent to Own and Lease Option program, offering homes throughout America. Finance the Dream prides itself on offering a comprehensive home ownership program its clients, including credit reporting and credit repair.
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