One of the most important parts of a loan application is your credit score. The loan officer will be looking closely at your credit; the credit score is a reflection of how you have handled credit in the past or whether you have had any credit before. All too easily, however, the information shown on your credit score represents false data. Making sure that the information in your credit file is correct is vital to maintaining a higher credit score and being offered better loan rates.
To make sure that the information on your credit report is correct start by requesting copies of your file from the three main credit agencies: Equifax, Experian, and TransUnion. Each of these agencies collect and report information separately, so while one of them may have wrong data, correct information might be on a different one. It is still a good idea to make sure they all have the same data because creditors will look at all three scores in making a decision.
Once you have a hard copy of your credit report then look closely at all the information included. Make sure that all the loans shown are actually yours, that the available credit amount is listed correctly, and most importantly that your on-time payments are reflected correctly. Pay close attention to any loans listed as slow-pay or in default. This information can have a negative impact on your credit score so be absolutely sure this kind of data is correct.
The credit reporting agencies have taken on an enormous task in collecting, sorting and entering all the raw data into their databases. It is no wonder that mistakes happen with all the common and similar names that people have and with the rarity that people review their credit files.
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.
Vincent Polisi is the founder of Finance the Dream which offers
Rent to Own Homes and lease with option to purchase in all 50 States. To find out more about how they can help you find the home of your dreams-even with bad credit, please visit them at financethedream.com. To learn more about
lease options, please visit his blog.
