Do you know your FICO score?
When you are looking to buy a new home it is very important to be sure you have the best credit score possible. You don’t want to have any surprises when you are applying for a mortgage.
Did you know that many credit reports contain errors that significantly affect the FICO score? You don’t want this to happen to you.
When Homer Buyer tried to get a loan to buy a house, he found out that he had a foreclosure on his credit report. He had never even owned a house before. It was obviously an error, but it took Homer some time to get the error corrected.
If Homer hadn’t corrected the error on his report, it could have cost him more than $20,000 in interest over the term of his loan. So what can you do if there are errors on your credit report?
You can get errors removed from your credit report. The credit bureaus are required to remove any disputed item from your credit report if they cannot be verified within 30 days.
Before you get your credit report pulled by a lender, know what it says:
- Order your full credit report from all three credit bureaus.
- Check each entry is an account you own.
- Check for any negative items.
- If you find negative items that don’t belong to you or are not accurate, file a dispute.
- Get an updated credit report to verify the deletion of erroneous negatives
Taking these actions can make a difference of up to 50 points on your FICO score.
This can translate into a much lower interest rate or even the ability to qualify for a loan that would have otherwise been denied.
If you would like more details on how to improve your credit score, get Chris Brisson’s 37 Days to Clean Credit course.
Allen Davis
RealEstateSearchDirect.com
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super blog! I am enjoying it!!
Very good one! There are high chances of error because human errors are possible. I think one should get his/her documents in order before applying loan so that it goes in their favor and they’re saved from the HELL period they suffer!
Great information regarding Credit score. This simple three digit number is going to change the life of every one and we shall be careful about this credit socre.
Tahnk you.