Credit Rating
Understanding your Credit Rating
Have you heard or seen the adds from companies that claim they can wipe away your bad credit history? They say they can get rid of a bankruptcy, collection accounts, charge offs…etc. Don’t believe them and don’t waste your money. Any errors on your report you can get removed on your own with a little work. Having an accurate credit report when obtaining a mortgage is important so please advise a loan officer if you notice any errors.
How do you know if your being scamed be a Credit Repair company:
1. They want you to pay a large fee (hundreds if not thousands) up front before doing any work.
2. Ask you not to have any contact with the bureau directly.
3. Ask you to try an obtain a new social security number or other fraudulent activities.
If you have errors on your report you can now dispute those errors directly with bureaus online. You no longer have to draft letters and mail the information in. Now let’s say you have an error on your report, you have written proof it’s an error but need it removed asap as you’re trying t obtain a mortgage?
Mortgage lenders have access to “Rapid Rescore” programs that will correct any legitimate error in 48-72 hours. However there is a fee of $25-$50, per item, per bureau that they charge to do this. You need written proof that it is an error and they will sometimes call to verify that as well. So to remove one error on all three bureaus, that could cost up to $150.00 and there is not guarantee it will work (all though it usually does).
Check your credit 1-2 times per year and make sure you’re on top of what is being reported. An accurate credit report will help you get the best mortgage possible.
Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538
FICO Score Credit Reporting Agencies
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