Check your credit report before you buy a home
Our credit reports and scores have a huge impact on
the interest rate a lender offers us, so it's
important that they offer a positive image of the
way we manage our debts. If you're getting ready to
enter the home buying arena, access and study your
reports as early as possible to allow time for
corrections to be made before the lender checks your
credit.
Online Credit Reports
The three major credit reporting agencies all
offer fee-based plans to check your credit report
online. Even though each agency uses a different
format to display reports, they all contain the same
basic details--but don't be surprised if the actual
details about your past and present history are
different on each report.
The three major credit reporting agencies are:
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Equifax
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Experian
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TransUnion
Other companies, such as MyFICO.com, are licensed to
provide reports and scores based on the information
collected by the three major credit reporting
agencies. The first time I checked my credit
reports, I found that one agency listed my maiden
name, but not my married name.
It showed my current address at a home I hadn't
lived in for 16 years and a past address in a city
where I've never lived. The same reporting agency
listed two social security numbers for my husband
and showed an auto loan as an open account with a
balance due, even though payoff had been made 12
months prior.
It didn't take long to for the errors to be
corrected, but it wasn't an overnight process. The
cleaner your reports are, the fewer questions your
lender will ask, so get all mistakes handled as
quickly as you can.
Each agency offers consumers many report
variations, including:
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A credit report with no credit score.
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A report that includes your current credit
score.
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A 3-in-one credit report that lets you see a
side-by-side comparison of records from all
three agencies, with or without scores.
Other products, including services that notify you
when your credit history is requested, daily and
weekly notification of all changes to your file, and
subscriptions that allow you to access your report
on a regular basis.
Each agency will ask you to establish a user name
and password. They'll ask you to verify your social
security number. They'll also ask you a series of
multiple choice questions about your credit
history--all designed to ensure you are who you say
your are.
Equifax and TransUnion reports can be viewed for 30
days, but Experian's report vanishes after you
logoff. Be sure to print it before you exit.
3-in-One Reports
In my personal tests, the information pulled
from each agency was the same as the data found on
its Web site. But the credit scores generated for
the "other" agencies--the agencies that did not
actually sell the report--were not accurate. So I
feel more comfortable ordering individual reports
from each agency.
Printed Reports
The cost is $8-$10 per report when ordered by
mail, but many states give consumers the right to
receive a report at a reduced rate.
Include the following with a mail order request:
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Your payment
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Your full name and address
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Your Social Security number
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Your current address and most recent former
address
Visit each agency's Web site to find current mailing
addresses.
Free Credit Reports
You are entitled to a free credit report if:
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you have been turned down for credit or
employment (due to your credit report) during
the past 60 days
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you believe your credit report contains
fraudulent information
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you are on public assistance
-
you are unemployed and plan to apply for
unemployment benefits within the next 60 days
Article source: about.com
Author: Janet Wickell
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