Helpful Mortgage And Real Estate Advice

What If I Find A Mistake In My Credit History?

By on January 16, 2014 in Mortgage Videos

You’ve taken the time to download and print your credit history from all three credit bureaus, including Experian, Equifax and TransUnion. As you read through the history, however, you see a glaring mistake. Regardless of the mistake type, it makes a significant difference on your credit score. If you see a mistake, take these few steps to smooth out the discrepancy and increase your credit score.

Evaluate Your Credit History

Each year, look through your three credit histories to find any problems. When you apply for a home loan, for example, lenders must pull your history to verify your responsibility and trustworthiness. Your interest rate, and even your overall approval, depends on this history and score.

Fix Mistakes

As soon as you find a mistake, gather your paperwork proving otherwise. Make copies of the statements or documents. Write an official letter to the particular bureau reporting the discrepancy. Include your explanation and paperwork proof. If all your documents are in order, the issue should be corrected quickly. Order another copy of your credit history again to see the error removed or altered. Your score should increase as well, depending on the discrepancy.

Identity theft has been an issue recently, making it even more important to check and correct problems on your history. Because these transactions are typically complex, you may need to talk directly to the reporting credit bureau to find out your correction options.

Add Comments For Clarity

Nobody has a perfect credit history. Life happens, from illnesses to death, causing missed or late payments to one or more bills. If you have a particularly good reason for a late payment stated on your credit history, send a request to the reporting credit bureau to add a comment. Because it is your history, you have a right to add information that is crucial for lenders to understand.

For example, a serious car accident made your rent payment late one month. Ask for that note to be documented with the past due information. When lenders look at your credit history, they can be sure that you weren’t being negligent during that month.

Your credit history opens up your life to fulfilling assets, from homeownership to financing a dream car. Keep a close eye on your history each year. Because you check it often, any errors that appear should be quick and easy to fix, allowing you to be approved for financing at any time you are ready to invest in a home.


About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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