Raising Your Credit Score: Appealing and Removing Bad Information | Mortgage

Raising Your Credit Score: Appealing and Removing Bad Information

by VincentPolisi

Your credit score is a key factor taken into account when a lender is reviewing a loan application. These scores are formulated by analyzing your past credit performance, but the information gathered and included on your credit report may not be accurate. Having inaccurate data on your report can lead to lower scores and less favorable loan terms.

To make sure that the information on your credit report is correct start by requesting copies of your file from the three main credit agencies: Equifax, Experian, and TransUnion. Each of these agencies collect and report information separately, so while one of them may have wrong data, correct information might be on a different one. It is still a good idea to make sure they all have the same data because creditors will look at all three scores in making a decision.

Once you receive the free credit report copies the next step is to look at each part very closely, even line by line. This report will show every creditor, the amount owing, and whether your payments are on time or late, or if the loan is in default. Make sure that everything on the report is actually your loan or credit card account, also making sure that all of your loans are indeed reported and that the available credit is listed. Each bit of this information is a part of your overall credit score.

With the monumental task of collecting and sorting credit data and then entering it into the companys database it is not surprising that mistakes get made. The difficulty increases with common names and when people do not review their credit files regularly.

Once mistakes are located, the next step is to appeal the entry on the credit report. All three of the primary credit reporting agencies have claims forms available on their websites. When filing a claim it is important to explain why the reported information is incorrect and to include any additional documentation that may be available to substantiate the claim. It is also worth noting that more recent items are less likely to be removed, than old items that have been included for a long time.

After an appeal or claim is filed the agency will spend the next 30 days or so investigating the situation. The information they discover will make the difference between having the data removed or not. Quite often the creditor will not reply to these credit investigations. When this happens the bureaus are required to remove any information included in the claim.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Vincent Polisi is the founder of Finance the Dream which offers Rent to Own Homes and lease option homes throughout America. To find out more about how they can help you find the home of your dreams-even with bad credit, please visit them at financethedream.com. To learn more about lease options, please visit his blog.