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Did You Know there are Errors on Your Credit Report that may affect Your Ability to Buy a Home?

August 2007 Newsletter

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From the previous newsletters; you are now well aware of what a FICO score is and why it is so important. We have reviewed the 5 most important factors that are considered in the credit score formulas are:

Your payment history
The amount of money that you owe
The length of time you have had credit
The type of credit that you have
How many credit Inquires

I thoroughly went through what your payment history involves and that it is very important that we change your history immediately… You want your scores to reflect a positive payment history; that you make your payments and you make them on time.

Next, I covered the concept of the “utilization rate”. This is where you should only be spending around 30% of your available credit in order to bring your scores up.

Then, I reviewed the types of credit cards, the how and the why you need to use them. I then discussed if your credit is being reported accurately by the credit card companies and went into depth on installment loans.
Now we are into the harsh reality that there are likely errors on your credit report.

Did you know that you have at least one error on your credit report? Removing errors from your report is a time consuming endeavor, but it can be a very effective way to improve your credit without paying out extra money.

85% of people have at least one error on their report. So we can pretty safely assume that you, Yes I do mean YOU- have errors on your credit report!

What constitutes an error you ask….Well, consider the following: a late payment, charge-off, or collection that is reported more than once OR Inaccurate information like your address, your social security number, account limits, even bills that do not even belong to you or unauthorized charges made to your credit card.

So what do you do?? Get out that credit report and start reviewing everything on it to ensure it is accurate.

Concentrated on the following errors first as these are the most important:

	Duplicates: collection accounts less than 2 years old and listed more than once. This is high priority and needs to be corrected.
	An inaccurate credit limit: are the limits on your credit card statement matching up with what your credit report says. This is high priority and needs to be corrected.
	Accounts discharged by a bankruptcy filing listed as “past due” instead of “included in bankruptcy”. This is a high priority that needs to be corrected.
	Mistakes in your payment history: this only needs correction if you made payments on time and it was not recorded as such. Also, if it is in the last 2 years and if it is hurting your credit have it corrected.
	Personal Information: Social Security number- if not correct, this is a high priority to have corrected. Perhaps there has been identity fraud or your credit report is being merged with another person. Incorrect Address- not usually a priority unless there has been identity fraud. Incorrect Date of Birth- not a priority unless related to identity fraud.
	Incorrect Account Numbers: not a priority unless related to identity fraud.
	Delinquency older than 7 years: write to have it removed.

If you identify any of the above that are classified as high priority mistakes on your credit report than you want to contact the appropriate bureau with a form for each error. Before mailing these letters send no more than two at a time to the credit bureau that has the error. Sent the highest priority mistakes first as they will make the most difference. You want to send the letter with a copy of the document supporting your claim, like bank statements or cashed checks or credit card statements with limits. You also want to enclose a copy of the credit bureaus mistake. NEVER send originals!! ALWAYS send copies and keep the originals for your records. Be sure and send the letters via certified mail with return receipt to verify that they received it. Retain a copy of the receipt from the post office and attach to your records for that mailing and attached the return receipt once you receive it. If for some reason you do not hear back from the credit bureau after 45 days resend everything. If another 45 days goes by and you still do not receive verification of correction or a reply getting a lawyer to draft the letter on company letter head can be more effective.

Remember, your finance specialist can help you with this. Or if you are seeing Larry for credit repair he is already getting this done for you. Please request more information or assistance from them if needed.
Lastly, because identity fraud is becoming more and more of a problem I will include the contact information of the Federal Trade Commission at www.consumer.gov/idtheft this is the site recommended if you or anyone you know believes they are a victim of identity fraud.

Okay, that should be enough homework for this month!! Remember, it is important for you to become familiar with what your credit report says and to ensure that it is accurate because this is what creditors and loan officers will use and are looking at when they determine what interest rate you get and how much money you will be approved for wherever you go!

I hope your summer is going well and you are enjoying your home.

Dedicated to improving your credit and making you a home owner,

Lori Jake
EZQualDreamHomes.com
Swiftcurrent Investment Group, LLC

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