Credit Reports and History:
No One Will Care More Than You
No one cares more about your Credit and credit standing than you ... right? Or should ...
While we expect creditors (banks, credit card companies, collection agencies, student loan lenders, medical providers, retailers, etc.) to act on our behalf regarding the recording of transactions, payments, and accounts, it's a fact ... errors occur. Errors that result in damage to our Credit History, Credit Scores, and our wallets.
How's that? Errors on our Credit Reports have repercussions. Some errors remain undetected for long periods of time. But even if short in duration, errors can result in lower Credit Scores.
Those lower Credit Scores, in turn, can cost you money when you apply for insurance(s), as insurance rates may be higher as a result. They can result in costlier cell service, higher car loan interest rates.
Or you may find that you're denied when applying for utility service(s), trying to rent, or if hoping to buy or refinance a home ... applying for your mortgage.
Got your attention?
It's a simple fact: Most people don't check their Credit Reports and Credit Scores as often as they should. Many errors could be addressed, issues, plus higher costs, could be avoided if they did.
But even when errors are found and then corrected within a creditor's accounting system? Don't assume that those corrections will get reported to the Credit Bureaus, or reported correctly.
Here are just 4 examples of the errors and issues I've seen on past clients' Credit Reports when they applied for mortgage:
- A client made a payment to a Collection Agency regarding their delinquent Utility Bill. Neither the Creditor or the Collection Agency reported that payment to any of the 3 major Credit Bureaus*. The client had assumed they would.
- A client paid a Judgment in full to a county clerk's office. An official "Release" or "Satisfaction of Judgment" was never recorded or forwarded to the Bureaus. The client had assumed it would be taken care of.
- A past client shared their name with another family member. Only the "Junior" and "Senior", plus their social security/date of birth, differentiated them from one another. We found information and transactions had been reported incorrectly to both family member's Credit Reports. Both parties had assumed the name differences were clear.
- A client's Credit Card payments had been made on time, but they hadn't automatically calculated onto their Credit Report. Creditors may or may not "report" or send data immediately, or even for weeks following a payment or transaction. The client assumed(during a very narrow processing timeframe) that the payment would be recorded immediately.
* The 3 major Credit Bureaus are: Equifax, TransUnion, and Experian ...
I want to stress: What is assumed ... or may seem like a "given", such as a payment of a debt, or a transaction that is straightforward and easy to accomplish, isn't always so.
We each need to take control of our credit profile and history. Acknowledge its importance. Make it a priority.
But be aware: The magnitude of the importance grows as you come closer to the time you hope to buy a home or refinance a loan.
It's absolutely true ... and ...
No one will care (or really should care) more about your Credit and credit standing than you. No one will suffer more consequences than you should something not be reported ... or an error performed.
Make this routine: Go to www.creditreport.com, at minimum, once per year.
It's simple to accomplish this important task ... and FREE. Under federal law, you're entitled to obtain a copy of your Credit Report from each of the three major Credit Bureau once annually.
- Review your Credit Report and personal Credit History.
- Check it for accuracy, as mistakes do happen.
Why wait until you're making application for loan or credit to discover that an error is on your Report? Why pay more for services and products when you deserve better rates?
Act proactively. Take action now. Doing so will save you time, frustration, and great stress later ...
* Hoping to Buy or Refinance a home in New Lenox or elsewhere in the Chicagoland area? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed