How A Credit Dispute Can Affect Your Chances Of Getting A Mortgage

In today’s day and age it is very important to own a home, but is there a possibility you can be denied home ownership before you even begin?  The answer is yes.

While we have been taught to dispute any inaccuracies in our credit report and do what it takes to protect and correct our credit, this can bite us in the butt while trying to secure a mortgage.

Most people will ask, “How can this be?” The truth is that now more so than ever lenders are using any means necessary to eliminate a potential homeowner from the lending process.

In a world that is consumed with debt, as a majority of Americans are constantly fixing their credit, especially when it is time to buy a house or any other considerable purchase this can create an unexpected problem.

The reason why you or I may be eliminated from the lending process is due to a process of verification that most large lenders such as Fannie Mae and Freddie Mac use.  During this process they look for any blemishes that stand out along with the state of your current credit.

They do this by viewing and analyzing both your credit score and credit reports.  At the time of review, in most cases if you have any open disputes you may have difficulty no matter how good your credit may be and if your credit is less than great you can expect to be flat out denied immediately.

This can be avoided by taking a few precautions. First, verify that there are no open disputes by checking your credit report.  Do not take a creditor or any other credit reporting entity for their word, while you may have agreed to terms, if it is not reported at the time you are seeking a mortgage, to the lender you still have an open dispute.

Next, if you are in a hurry to get your mortgage process underway and you have decent to great credit, it may be in your best interest to hold off on the dispute until you get the ball rolling on the home owning process.

For those with not so great credit, it is better to be honest with a potential lender, as they should have a general feel for the process and should be able to tell you upfront if an open dispute will be a red flag and keep you from home ownership before you begin the long application process.

This does not necessarily mean you should not pursue lending, but it is far better to be aware and have a read on the potential outcome of your loan application process before starting.

Finally, I cannot reiterate it enough: Always keep an eye on your credit and take care of any disputes as soon as possible.  Also, stay aware and continue working towards a higher credit score and a blemish free credit report.  Work towards securing financial freedom and staying there.

Credit repair myths

Credit repair is something that is getting more and more attention these days and there is a good reason for it. The main reason is that we are currently going through a major financial crisis and that everything that you can do to advance your financial situation is more than welcome. And when we are talking about one’s financial situation, credit rating is an essential part. It determines how easy it will be for you to get credits, what kinds of interests you are going to have to pay and so on. Without a good credit rating, you will not fare so well and that is why credit repair is so useful. However, as it is often goes, there are also innumerable myths associated with credit repair and we would like to debunk at least a few of them.

The first of these is that credit repair is an illegal practice. Nothing could be further from the truth as you can find out if you do even the basic search on this practice. The fact is that this is something you do because there are chances of your credit rating being evaluated wrongly and you are simply protecting yourself. It is not like you were rigging anything or trying to scam anyone.

Some people also believe that the mere checking of your credit rating will result in it dropping. Once again, this is a complete fallacy and you have every right to check your credit rating daily, if you wish. There is also the myth about not being able to do credit repair on your own. It is a time-consuming and a relatively complex task, but if you put your mind to it, do proper research and really focus on doing it properly, you can do it as well as professional services. You need to be precise, thorough and meticulous, but it can pay off big time.

There is also the belief that you have a single credit score and that you are stuck with it. In fact, you have multiple scores and the lenders who check into your credit ratings get a median value by averaging your scores. What this means is that you need to address each of them and make sure they are as good as you can make them to be.

Some people also believe that certain negative items are impossible to remove from the credit history. If you are in the right and if there has been a mistake made, you can rest assured that you will be able to remove it. It may be time-consuming and you might find difficulties doing it, but eventually, it will be nothing more than a bad memory.

Some people steer clear of credit repair because they believe it will take years to make it happen. This is an exaggeration and if you do everything properly, you can have it mended in no time. It is simply a matter of putting your mind to it and persevering. There is also a myth that used to be true and that involved being negatively affected if you shopped around for interest rates, mortgages and auto loans. These days, this is simply not true and all of your searches in a single time period will count as just a single search.

This is just scratching the surface and there are certainly quite a few more credit repair myths that need to be addressed. However, we believe that this is enough to get you started and we also hope that you will start considering it more seriously now that you know that these are just not true.

 

Getting the ultimate credit repair service

It is no secret that credit repair is something that is not only done when you want to get a nice loan with low interest rates, but something everyone should do every now and then. If nothing more, you should at least check your credit rating and make sure that everything is in order there and that there have been no huge mistakes made that will lower your credit rating. There is always a possibility to do this on your own, putting in enormous amounts of time and effort, but if you do not want to do it on your own, you also have the possibility of getting credit repair service that will do this for you. It is, however, crucial that you know how to choose the right one.

The first thing to do is to do away with all the obvious fraudulent companies offering their services on the internet and elsewhere. The easiest way to go about this is to check their claims and advertisements. If they offer services and benefits that are too good to be true, then they are. You are looking at services that have nothing to do with credit repair, or proper credit repair in any case. It is far more likely that they are simply out to get your personal details or something even more sinister.

Of course, this might be too subtle to notice and that is why there are websites where you can get reviews of credit repair services. These websites include information obtained and shared by professionals who have examined different companies and who compiled everything that is good and bad about them. If you are looking for more of an unfiltered approach, you can always check out some communities and forums where ordinary people talk about the different services they had business with.

When it comes to choosing among the reputable credit repair services, there is still a lot to take into consideration. For one, you need to know exactly what you are getting. Learning that they offer “the most comprehensive credit repair service” is not enough. You want to know exactly what it is they will do for you and when you can expect it. this also means that you will be comparing the available services from every of these credit repair companies, finding the best ratio between the prices and the things you get for your money.

It is also essential that the company has a great customer service. You should never feel like one of thousands of their clients, but a unique individual whose issues are being dealt with by people who know who you are and who know at least something about your situation whenever you ask them. If you ever get the feeling that they are not treating you properly or that they are wasting your time and money, you can always cancel the service and go for another one. The good thing is that it is a buyer’s market and that you can shop around.

What is Credit Repair?

Credit repair – what’s it all about

You have probably heard of credit repair services and the practice itself. In fact, you have probably been shelled by the advertisements from companies that offer the most incredible credit repair services you can find. They are being advertised as miracle sent from heavens and that is exactly the reason why you should learn more about this practice so that you know what you can expect.

Well, it all starts with you wishing to borrow money from a bank, for example. Now, they need to calculate the risks they are getting into by lending you the money. With banks and loans it is all about statistics and covering for all the possible eventualities. Therefore, they see your credit rating as the indication of how likely you are to pay them back.

These credit ratings are, in fact, statistical representation of your financial history and current situation and they are in fact a compilation of these, a huge list that is then analyzed in order to calculate whether you will be given a loan and how much you will need to pay back. Now, if you thought that it was the government providing this information, you would be very much mistaken. In fact, this is handled by three, private companies called Equifax, Experian and Callcredit. And considering how many people they are evaluating, there are bound to be certain mistakes that bring your credit rating down.

And it is these mistakes that credit repair is all about. A well-known and well-publicized fact is that in more than 80% of cases, the credit ratings contain certain mistakes that are discovered only when you analyze your credit history yourself. The point of credit repair is to find these mistakes and to make sure they are purged from your credit history, which brings your credit rating up. Because of this, credit repair is nothing illegal. In fact, it is bringing facts to light.

However, on the other hand, this also means that credit repair will only go so far. It will only correct mistakes that were made. If you did bankrupt three years ago, credit repair will not hide it or fool anyone into thinking this did not happen. Still, it can be an amazing thing for your credit rating and definitely something you need to consider.

My Credit Repair Tips