Credit Report Accuracy:

Your credit report is one of the primary indicators by which lenders anticipate your ability to repay your loan.  It is ironic to note that some experts believe that as many as 50% of all credit reports contain errors.  Many of these errors are insignificant but some of these errors can dramatically reduce the possibility of your participating in the American Dream of home ownership. 

Many individuals think their Credit Score is like a permanent tattoo.  Your Credit Score is temporary.  It changes from month-to-month.  This website will tell you how to improve your Credit Score.  Many individuals do not understand this fact: The accuracy of your credit file is your responsibility, not the lenders responsibility or the credit reporting agencies responsibility.  If you want your credit score to change, you must take action.

Lenders have done a great job of eliminating prejudice from the home loan system.  They have done this by looking at a number of statistically significant indicators of your ability to repay your loan.  Your past ability and willingness to repay loans (your track record) is one of the best indicators of your willingness and ability to repay loans in the future.  A portion of your history in repaying loans is listed in your credit report.  Lenders don't drive their cars by looking at their rear view mirrors.  That would be very dangerous.  But lenders lend money by focusing on the road you've already traveled.  Many of the statistical indicators lenders use might not make much sense but they seem to work.  America has the lowest mortgage interest rates of any country in the world.

The best way to improve your credit is to pay your bills on time.  Six months of on-time payments will dramatically improve most credit scores.  All false, derogatory information should be removed from your credit report.  The links on the left provide instructions and sample letters you can download to have false, derogatory information removed from your report.  You can also add positive information to your report.

Many items are not included on your credit report if they are paid on time.  As an example, it is important for you to document your rent payments by paying your rent on-time with a check from your checking account.  Lenders will ask you to provide them a copy of both the front and back sides of your canceled rent checks.  Lenders consider the fact that you have paid your rent and/or your mortgage on time in the past as one of the best indicators or your willingness and ability to pay your new mortgage in the future.

Click Here for the Glossary.

Learn more by clicking on: What are Credit Scores?

The information on this page and in this website is derived from sources that we believe are reliable. This information is not guaranteed.  We are not offering legal or accounting advice and suggest that you contact a lawyer and an accountant before taking any action.