6 Things To Do To PROTECT YOUR CREDIT
April 1st, 2009 categories: Buyer Resource, Seller Resource
Don’t Let Bad Credit Ruin Your Home Purchase
With home prices and mortgage rates at an incredible low it is imperative that you do what you can to take advantage of this “who knows when to be repeated” opportunity. Don’t let a slip up in credit ruin a great escrow deal you are in. With loan qualifications that are much stricter than the recent past, any slip in credit could mean bad news for your deal…seriously! Do yourself a favor and take a few minutes to read about some 6 great tips to avoid this easy-to-avoid disaster.
Unless you pay for a credit monitoring service, you are likely the only one who is going to look out for your credit score. With so much depending on your credit score (mortgage rates, car insurance rates, even employment background checks in some cases, etc), it makes perfect sense that you monitor this number frequently-especially if you are in escrow to buy your home. I have listed some tips that people have found helpful, and very beneficial in maintaining a solid credit score.
There are several steps you can take to make sure your credit score is as good as it should be.
1. Do not let bad credit ruin a deal
Studies (U.S. Public Interest Research, June 2004) have shown that 23% of consumers had mistakes on their credit report that resulted in denial of credit. The same study also showed that 79% of U.S. consumers had some sort of mistake listed on their credit reports.
2. Know what is in your credit file.
Each US consumer is entitled to one free credit report annually from each of the three credit bureaus: TransUnion, Equifax, and Experian. Visit AnnualCreditReport.com for all of the details.
GREAT TIP: Some have chosen to use their free credit report, from each credit bureau once every 4 months. For example, some people use their free Experian report in January, their free Equifax report in May, their free TransUnion report in September, and then, the new year starts, and the cycle continues. With this schedule, you are monitoring your credit each 4 months.
3. Dispute information that is not correct.
If inaccurate information is listed on your report, the next step is to correct it. If consumers use AnnualCreditReport.com they can dispute errors online. If consumers used another means, a letter detailing the inaccuracy should be sent to each of the three credit bureaus. The letter should provide copies of supporting backup documentation.
4. Dispute incorrect information at the source.
In the event of inaccurate information, consumers should also contact the source of the incorrect information to resolve the errors.
5. Remove outdated information.
Credit bureaus are, by law, supposed to remove negative information that is more than 7 years old. Consumers are responsible for ensuring this information is correct.
6. Protect your credit identity.
If consumers find their credit has been compromised, they can request that a credit agency put a “fraud alert” on their account. The Fair Credit Reporting Act makes it a crime to knowingly and willfully obtain a person’s credit report without their written consent, or under false pretenses. Consumers can also request a “security freeze” to prevent identity theft. A “security freeze” can be temporarily lifted to allow for application of credit, for anything such as a new car loan, or a new mortgage.
So make sure keep up to date on Sonoma County Mortgage Rates and put these tips to good use; Happy House Hunting!
