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Can Errors On Your Credit Report Stop You From Obtaining Another Mortgage?

Years ago, obtaining a loan was easier. It would be a face to face affair and they would consider several variables in determining whether you qualify for the loan. Nowadays, it is strictly based off numbers, most importantly, your three digit number.

Credit matters. Simply put, good credit will save you money and will get what you the things you want and need i.e. a home. With that said, pre-planning can go a long way. One staggering evidence that was recently produced by the Federal Trade Commission is the amount of errors found on individual’s credit reports. It is more common than you think. These possible errors on your credit report need immediate attention as this will largely affect your mortgage condition as mentioned in my previous blog here.

What if I were to tell you that your credit score could be dinged without your knowing?

Please read this excerpt: *from ftc.gov

“These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics.  “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly.  If they don’t, they are potentially putting their pocketbooks at risk.”

The study, in which participants were encouraged to use the Fair Credit Reporting Act (FCRA) process to resolve any potential credit report errors, also found that:

  • One in four consumers identified errors on their credit reports that might affect their credit scores;
  • One in five consumers had an error that was corrected by a credit reporting agency (CRA) after it was disputed, on at least one of their three credit reports;
  • Four out of five consumers who filed disputes experienced some modification to their credit report;
  • Slightly more than one in 10 consumers saw a change in their credit score after the CRAs modified errors on their credit report; and
  • Approximately one in 20 consumers had a maximum score change of more than 25 points and only one in 250 consumers had a maximum score change of more than 100 points.

These “errors” can be disputed by yourself. However, our suggestion is to pay a small fee and use a professional or better yet, attorneys who will fight for you to remove these negative items.

Removing a short sale or a foreclosure as well as several negative items off your report IS possible. However, it is pivotal to find the right attorneys for the job. There are countless credit repair companies who prey on homeowners in distress. For years, we at Seattleshortsaleblog have been endorsing the absolute best company to work with for rebuilding credit. In 2011 alone, Lexington law removed 2,548,948 negative items and have exponentially grown every year in removing more items.

To get a free consultation at Lexington Law, contact them at their direct number: 888-586-6113.

If you are a distressed homeowner who is looking into exit strategies for your current home, it would be wise for you to make sure you are setting your credit up for success so you can qualify for your next home. Contact us here if you would like more information on exit strategies for your home.

Hope this helps

Peter

Written by SSB

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