Having damaged credit can limit your purchasing options. However, when it comes to repairing your credit there are plenty of ways to accomplish that. One of the most effective ways is to guarantee the information on your credit report is accurate. Credit reporting agencies have taken on a monumental task; it is not surprising that mistakes are fairly common. Common mistakes include reporting other peoples credit on your report and including information that should have been removed.
There are three main credit-reporting agencies. These are Equifax, Experian, and TransUnion. Each of them operates and maintains their own database of credit information and records, and each of them gathers information from different sources. Because of this there is a very good chance that mistakes will appear on your credit report and will affect your credit rating. There is simply too much data being entered by too many different people for mistakes to be completely avoided.
Each of the credit bureaus will calculate a FICO score, so you will have three different scores. If there is a sizeable discrepancy between the scores then it is probable there is a mistake on your report somewhere.
Your ability to borrow and the terms under which you may borrow money are directly impacted by the three different credit scores because they are all important. Despite their different lending protocols, it is common for lenders to use a persons middle score in their decision-making. Because of this it is not enough to just get your credit report if you want to improve your scores. Request reports from all of the Big Three credit reporting agencies and then go through them line by line to determine if there are any mistakes.
Bear in mind that a mistake may not be an entire entry in of itself, but it might involve the amount of money involved, the time when the debt was reported, or the final disposition of the debt. This is why the line-by-line review is a good idea. You may see an entry regarding a debt you did in fact pay late on, but it might not have been reported at the appropriate time (a common measure taken to keep items on your credit report longer than they should be) or for an incorrect amount.
Also, keep in mind that new information is being added to your report on a regular basis. Therefore inspecting your credit report for mistakes is not a one time event, but should be undertaken on a regular basis. Once a year, or about nine months before you intend to apply for a major loan, are the usual recommendations for inspecting your credit report for errors.
There are three main credit-reporting agencies. These are Equifax, Experian, and TransUnion. Each of them operates and maintains their own database of credit information and records, and each of them gathers information from different sources. Because of this there is a very good chance that mistakes will appear on your credit report and will affect your credit rating. There is simply too much data being entered by too many different people for mistakes to be completely avoided.
Each of the credit bureaus will calculate a FICO score, so you will have three different scores. If there is a sizeable discrepancy between the scores then it is probable there is a mistake on your report somewhere.
Your ability to borrow and the terms under which you may borrow money are directly impacted by the three different credit scores because they are all important. Despite their different lending protocols, it is common for lenders to use a persons middle score in their decision-making. Because of this it is not enough to just get your credit report if you want to improve your scores. Request reports from all of the Big Three credit reporting agencies and then go through them line by line to determine if there are any mistakes.
Bear in mind that a mistake may not be an entire entry in of itself, but it might involve the amount of money involved, the time when the debt was reported, or the final disposition of the debt. This is why the line-by-line review is a good idea. You may see an entry regarding a debt you did in fact pay late on, but it might not have been reported at the appropriate time (a common measure taken to keep items on your credit report longer than they should be) or for an incorrect amount.
Also, keep in mind that new information is being added to your report on a regular basis. Therefore inspecting your credit report for mistakes is not a one time event, but should be undertaken on a regular basis. Once a year, or about nine months before you intend to apply for a major loan, are the usual recommendations for inspecting your credit report for errors.
About the Author:
Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Their video training is designed to allow consumers to take control of their financial future by learning the insider secrets of credit repair. For more information on credit repair, please visit them on the web. Finance the Dream helps people looking for a rent to own homes take advantage of the $8,000 tax credit.
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