| Credit Bureau Overview |
| Articles - Mortgage |
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In today's real estate market, it is more difficult than ever to qualify for a home loan. With foreclosures on the rise, your credit score needs to be good, if not stellar, for lenders to approve your loan.
In today's real estate market, it is more difficult than ever to qualify for a mortgage. With delinquencies on the rise, your credit score needs to be good, if not stellar, for lenders to say yes. Very few people understand everything they need to about credit. Even people with excellent credit are confused about exactly how credit works! This leads us to the simplest question of all. What is a credit bureau? A credit bureau is a large database that keeps information on most adults in the United States. The information they store includes payment history, addresses and employment history. People often believe that when something is incorrect in there credit file, that the credit bureau has caused this. Actually, this is not true! It is the creditor that has reported the account incorrectly. The credit bureaus primary function is to collect information. Unfortunately, they report the data given to them by lenders without verifying anything. People across the United States find false information in their credit bureaus every year. The damages caused by these errors can range from paying higher interest, credit denial and lost employment opportunities. Since without your involvement, your credit report is simply a big compilation of unverified data, the federal government has numerous consumer protection laws in place. The key thing you need to understand is that the only time anything in your credit file will be verified as being legitimate is if you file a credit bureau dispute. When this happens, the creditor has 30 days to substantiate to the credit bureau that the item is accurate. If they fail to verify the item as correct within this time frame, the item is required by law to be deleted from your credit report. There are many keys to maintaining a high credit score. One of the most important is consumer knowledge and active involvement in monitoring your score. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Vincent Polisi is President of financethedream.com. financethedream.com is the nations leading Rent to Own and Lease Option program, offering homes throughout the United States. financethedream.com offers a comprehensive home ownership program its clients, including credit reporting and credit repair. |