23rd Jul 2010
Credit Restoration: Overlooked Facts Regarding Erasing Mistakes
Credit restoration is not an easy task and most of the people who have a good knowledge of the process also know that it is each individual’s duty to check through the their three credit reports and check for errors and to see that the reporting is specific and not for unwanted purposes. Each of the reports has a lot of potential for errors because all the three credit reporting agencies such as the Equifax, Experian, and TransUnion have their own records and they have their own specific resources to obtain information. Usually, when you are communicating with the top lenders like a mortgage lender, then all the three credit reports are looked into and your “3-in-1” credit rating is obtained by averaging the FICO scores in the three reports. Sometimes, two of your reports are ‘very clean’ but your third report may have a lot of mistakes, the end-result being your average score is badly affected.
While checking through your credit report, always go in for the evident entries which have been entered in your report, but which should not have been there. Either these entries are of someone else and have been entered in your report by mistake or the entries should have been erased from the report a long while ago. The best part about these mistakes is that they are not very difficult to find as a result of which once you locate them, you can easily dispute them out with the available evidence and most of the people check out only for these mistakes. Most of the times all of us overlook the entries confirmed by the genuine lenders and do not check them, as we are sure that we are indebted to these lenders. However, this is not a good approach and certainly leads to huge blunders.
It must be surprising for you to learn that a major portion of your entries are entered manually, so now you can definitely understand the reason why there are several mistakes in your credit report, wherein some of them even look like legitimate entries. These legitimates errors will affect you and your report in a very bad way and will also affect the way a lender perceives it. By the addition of just a ‘0’, your credit cards debt can increase ten times say from $10,000 to $100,000, which is a huge change and it will reflect negatively in your report. Also, in case if there are entries which have been included the right way, care should be taken to see that if they have been resolved or have been paid off, then it is necessary that the credit report should clearly include the same details. Even though, your FICO score will still show your negative effect, yet, when a lender takes a keen look into your credit report, it will surely make a difference in his opinion and will be able to clearly portray the level of risk which you are portraying.
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