In order to get mortgage financing, one of the things you need is good credit. So it is important to check your credit report for mistakes. Errors in payment reporting, duplicate account reports, or fraudulent accounts can lead to a denial of your mortgage financing, or, if you do get financing, result in a higher interest rate.
My Two Dollars offers some great advice when it comes to fixing mistakes on your credit report:
- Get a copy of your credit report -- one from all three credit bureaus -- and look carefully for mistakes. You should go through annualcreditreport.com, or pay to get it from one of the three major bureaus or from myFICO.com. Do not get a "free" credit report from a service that actually signs you up for a monthly fee.
- File a dispute with each credit bureau. Online filing allows you to explain the problem and provide back up information. The credit bureau will then contact the creditor or lender and get information from them.
- Take the issue with the creditor. A creditor may deny that a mistake has been made. In such cases, you will have to file a dispute with the creditor and come up with a resolution. Once that it done, the error will be changed on your credit report.
I would like to add that it is worth noting that you can make notes on your credit report, telling your side, even if the creditor does not agree with your dispute. Also, you can call the credit bureaus if you have questions.
In cases where fraud has taken place, as soon as you see it, you need to notify the police and the FTC.
image credit: sxc.hu
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