Qualifying for a home loan has become more difficult than ever. While once you could be approved with an average score, in todays economy your credit score needs to be almost perfect to score an easy loan approval!
Still, most people are confused when it comes to understanding credit basics. Even seasoned investors find themselves overwhelmed in todays changing market
First, we will answer the most basic question of all. What precisely is a credit bureau?
Basically, a credit bureau is a giant record keeper that stores information on almost every adult in the United States. Information includes addresses, employment and most importantly, payment history.
People often believe that when something is incorrect in there credit file, that the credit bureau has caused this.
This is not accurate! It is the lender that has reported incorrectly.
The credit bureaus collect data, but they do not confirm anything. What they report is simply the information that creditors supply them with. This means that a creditor can report anything to the credit bureau and it will appear on your report, regardless of whether it is true.
Millions of Americans find errors in their credit files every year. These inaccuracies can be costly, leading to increased rates, credit denial and sometimes even missed 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 key thing you need to understand is that the only time anything in your credit file will be verified as being legitimate is if you file a credit bureau dispute.
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.
Still, most people are confused when it comes to understanding credit basics. Even seasoned investors find themselves overwhelmed in todays changing market
First, we will answer the most basic question of all. What precisely is a credit bureau?
Basically, a credit bureau is a giant record keeper that stores information on almost every adult in the United States. Information includes addresses, employment and most importantly, payment history.
People often believe that when something is incorrect in there credit file, that the credit bureau has caused this.
This is not accurate! It is the lender that has reported incorrectly.
The credit bureaus collect data, but they do not confirm anything. What they report is simply the information that creditors supply them with. This means that a creditor can report anything to the credit bureau and it will appear on your report, regardless of whether it is true.
Millions of Americans find errors in their credit files every year. These inaccuracies can be costly, leading to increased rates, credit denial and sometimes even missed 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 key thing you need to understand is that the only time anything in your credit file will be verified as being legitimate is if you file a credit bureau dispute.
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 financethedream.com. financethedream.com is the nations top Lease Purchase and Lease Option program, offering homes throughout America. financethedream.com offers a comprehensive home ownership program its clients, including credit reporting and credit repair.
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