When Credit Errors May Impair Home Loan Approval

During the loan application approval process, a request that a report be sent from any of the three major credit reporting agencies (Equifax, Trans Union or Experian) be submitted to lending institution or lender in question. As any mortgage company may obtain report for any credit bureau, financial experts recommend that home loan shoppers obtain their credit records from all three agencies if there is a concern about what information is detailed in a credit file.

What transpires when a consumer finds errors or erroneous information detailed in their credit report? Correcting any inaccuracies detailed in the credit report is the most assured way of ridding errors from a consumer’s credit report.

The first order of affairs in correcting inaccurate details or unfair information in a credit report are to notify or contact the creditor who filed the complaint to amend and modify the error and request that any credit reporting agencies involved be notified in writing. Remember to document all dates and times of notifications. Save any copies of correspondence sent to the creditor. If the error is a mistake on the part of the credit bureau, challenge it. According to Federal law, the error should be deleted or removed from the credit file, particularly if the disputed information cannot be confirmed. By law, both the credit reporting agency and the creditor who filed the derogatory information must assist in resolving the issue in a timely fashion, usually within 30 days.

After the inaccuracies are corrected, the credit-reporting bureau will submit a revised copy of the report to any credit grantor or financing company who requested the credit file within the last six months. More importantly, the credit-reporting agency must comply only if requested by the consumer.

In summation, in cases of identity theft or credit card fraud, a credit report may demonstrate that someone is using, or plotting to utilize, a consumer’s credit information for fraudulent objectives.