Your credit score is a key factor taken into account when a lender is reviewing a loan application. These scores are formulated by analyzing your past credit performance, but the information gathered and included on your credit report may not be accurate. Having inaccurate data on your report can lead to lower scores and less favorable loan terms.
The first step is to obtain a free copy of the credit reports from each of three primary credit reporting agencies: Equifax, Experian, and TransUnion. It is necessary to get all three reports because each of them are based on different databases and a mistake on one report may not be recorded on another. The lender is likely to look at all three scores; therefore, the savvy borrower should as well.
Once you receive the free credit report copies the next step is to look at each part very closely, even line by line. This report will show every creditor, the amount owing, and whether your payments are on time or late, or if the loan is in default. Make sure that everything on the report is actually your loan or credit card account, also making sure that all of your loans are indeed reported and that the available credit is listed. Each bit of this information is a part of your overall credit score.
The process of retrieving credit data and entering it into the agencys database is prone to mistakes, especially on reports that are not monitored frequently or for people that have common names. In view of the enormous amount of data received and the massive task of sorting it and then entering it into the agencys database, mistakes are virtually inevitable. This means it should come as no surprise to find at least some mistakes on a credit report.
If you find mistakes and false information you can appeal the information by contacting the reporting agency. The main credit reporting agencies have websites that will have a claim form available on them that will make resolution of the problem easier. To make your claim move forward smoothly it is a good idea to include any documentation that will substantiate what you are saying and why you think it is incorrect. It is important to frequently look at your credit reports; getting old information removed is much easier than having new data removed or corrected.
The credit reporting agencies generally take about 30 days to look into a credit appeal after the claim is filed. What they find in their investigation will decide whether the information stays or is removed from your report. If a lender does not acknowledge the claim the credit bureaus will remove the information as required.
The first step is to obtain a free copy of the credit reports from each of three primary credit reporting agencies: Equifax, Experian, and TransUnion. It is necessary to get all three reports because each of them are based on different databases and a mistake on one report may not be recorded on another. The lender is likely to look at all three scores; therefore, the savvy borrower should as well.
Once you receive the free credit report copies the next step is to look at each part very closely, even line by line. This report will show every creditor, the amount owing, and whether your payments are on time or late, or if the loan is in default. Make sure that everything on the report is actually your loan or credit card account, also making sure that all of your loans are indeed reported and that the available credit is listed. Each bit of this information is a part of your overall credit score.
The process of retrieving credit data and entering it into the agencys database is prone to mistakes, especially on reports that are not monitored frequently or for people that have common names. In view of the enormous amount of data received and the massive task of sorting it and then entering it into the agencys database, mistakes are virtually inevitable. This means it should come as no surprise to find at least some mistakes on a credit report.
If you find mistakes and false information you can appeal the information by contacting the reporting agency. The main credit reporting agencies have websites that will have a claim form available on them that will make resolution of the problem easier. To make your claim move forward smoothly it is a good idea to include any documentation that will substantiate what you are saying and why you think it is incorrect. It is important to frequently look at your credit reports; getting old information removed is much easier than having new data removed or corrected.
The credit reporting agencies generally take about 30 days to look into a credit appeal after the claim is filed. What they find in their investigation will decide whether the information stays or is removed from your report. If a lender does not acknowledge the claim the credit bureaus will remove the information as required.
About the Author:
Vincent Polisi is the founder of Finance the Dream which offers houses for rent to own and lease with option to buy homes throughout America. To find out more about how they can help you get into your dream home, please visit them at financethedream.com. To learn more about lease options, please visit his blog.
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