Turning Wrongs into Rights

One of the most critical documents that a lender will review when underwriting a home loan application is an applicant’s credit report.  The credit report shows how an applicant has paid their debts in the past, and the lender will use that information to determine the likelihood that the applicant will make timely payments on the new loan.  Additionally, the credit score on the report will impact the interest rate that is available to the applicant.  Any erroneous information that is derogatory can increase an applicant’s cost for the loan, and their ability to qualify.  Fortunately for consumers, the three credit repositories that store all of the credit data, TransUnion, Equifax, and Experian, have made it easier to dispute erroneous information.

All three credit repositories now allow consumers to dispute erroneous information online.  Previously, disputes had to be done in writing via snail mail.  Letters of explanation and supporting documentation can also be uploaded via the internet.  The repositories then reach out to the creditor that is reporting the information for a response to the dispute.  Creditors have 30 to 45 days to respond.  If they fail to respond, the repositories then remove the information.

Due to the length of time it may take to remove erroneous information, consumers should work to fix their credit before applying for a loan.  Therefore it is important to monitor your credit regularly.  Everyone has a right to a free report from each of the repositories every year.  These free reports can be requested at www.annualcreditreport.com

*GOD Speed*





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