Check Your Credit Long Before You Need Financing

Most people start to look at their credit report too close to the opportunity to seek financing. It is often at that time when a mortgage lender or auto finance companies advised that there is negative credit appearing on one’s credit report. Although the person seeking financing may claim that the information is inaccurate, the finance company will not be willing to rely on that statement.

What the borrower must do is engage in a campaign to correct the misinformation that is appearing on the credit report. This dispute phase can be done in writing or it can be done by initiating a dispute over the internet. The internet method is preferable since the dispute can commence immediately, unlike the mailing process.

The three credit bureaus that need to be contacted are Transunion, Experian and Equifax. Since each bureau will contain differing information, it is imperative that the person seeks the information listed in each bureau. The person should then take the necessary steps to dispute every single item that is incorrect. It could be as simple as a late payment or it could be as difficult as a judgment lien. No matter what the misinformation may be, it is critical that the borrower take action at once.

The process of a dispute is not handled overnight. Upon receipt from a person that there is incorrect information on the credit report, the credit reporting company will contact the company who provided the information. If the party cannot verify that the information is accurate within thirty days of receipt of the letter from the bureau, the negative information must be removed. This delay in clearing the credit report of negative information can cause the borrower to be inadvertently delayed in obtaining a loan or other financing.

The time it takes to remedy misinformation on a credit report is the very reason why a person should stay active in monitoring his credit reports. Additionally, once a person begins to think of obtaining some form of financing, he should proactively seek a copy of each of the three credit bureau’s reports. This way, if there is total inaccurate information appearing on the report, the person can quickly begin to remedy the situation.