subject: Home Buying Credit Report Tips [print this page] Home Buying Credit Report Tips Home Buying Credit Report Tips
Purchasing a home is probably the biggest investment anyone ever makes, and getting the process right can be complicated, especially because this is not a purchase you make every day. One of the most crucial elements to buying a home of the right price and getting the right mortgage has to do with your credit report. It's important that several months prior to looking for a new home you focus on improving your credit score. The earlier you address this problem in better shape you'll be in when you start to shop for a mortgage.
The first thing you want to do is get a copy of your credit report. It's important that you read and understand what is located in these credit reports. After all, why should a lender know more about your credit than you do? Carefully read and analyze each aspect of each credit report and check that the information from one report coincides with that of another.
Eliminate Mistakes
Research indicates that between 25 percent and 50 percent of credit reports have erroneous information on them. A credit reporting agency must be able to prove that the information located on the report is factual. Review your dates to ensure that your payments that were made on time are actually recorded as being made on time. There is often a discrepancy in this area. Check to make sure that the debt is actually yours and that you are not a victim of identity theft. It takes just one unauthorized account to cause havoc on your credit score. Call credit reporting agencies that have listed erroneous information to clear up this information. It's important to know that you have right under the fair consumer credit act and the credit reporting agency has to help you eliminate erroneous information.
Follow Up
One of the biggest mistakes people make good time to clear up their credit history is the failure to follow up on erroneous credit listings. You must be persistent and follow up with every creditor by writing a letter, stating what the information is, when it was registered and when you called to clear up the matter. Expect a response within 30 days. Otherwise, you will need to follow up with another letter.
Pay on Time
Pay all of your bills including those that are utilities on time. Late payments made on phone bills, electric, gas, mobile phones, etc, are also reported credit reporting agencies. By making your payments on time you start to establish good credit habits and this will be reflected on your credit report.
Pay Off Credit Cards
Pay off credit card balances and keep them only at 10 to 30 percent of your credit limit. If possible pay off the entire balance on a monthly basis. This will quickly improve your credit score.
