Buyers Tip: Checking for Credit Score Errors

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With interest rates at an astounding low, now is a great time to buy a home instephenvi Stephenville. But picking out the perfect place for you is a big decision, and big decisions come with careful preparation. It’s common knowledge that lenders rely heavily credit reports to help evaluate a potential buyer before issuing a mortgage loan, so it’s important to make sure your credit report is accurate and error free before applying for one.

A credit report, more often referred to as a credit score, is an important resource for banks and lenders when determining a number of parameters when authorising a mortgage loan, from how much they are willing to lend, to the interest rate you are eligible to receive. Most consumers depend on this information to be correct, some even taking it for granted, but credit score errors are a lot more common than most people think.

Several past studies from various consumer groups have shown that around 30 to 80 percent of credit reports contain errors, with the majority of such errors being grave enough to cause significant financial harm to the borrower.

A more recent study by the nonprofit organization American Consumer Credit Counseling produced an even more alarming number, placing the error rate at 90 percent.

While many credit bureaus dispute this claim, it’s always a good idea to check for yourself, to make sure your credit score is accurate and up to date; Here’s how!

Every consumer is entitled to three free credit reports a year from each of the major credit bureaus: Equifax, TransUnion, and Experian, and should make sure to order them annually. Read over these reports thoroughly to determine if there are discrepancies, and report any errors directly to the company that provided the report. Additionally, consumers are able to order their FICO credit score, for a fee, from www.myfico.com. FICO credit reports are the source most lenders turn to for an accurate representation of a consumer’s credit history.
Stephenville real estate is quickly becoming a hot commodity, be sure to maximize your chances of becoming a new home owner by double checking your credit report for errors, then give us a call to find the right home for you!

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Cindy Carrell is an amazing realtor!