Before you apply for a mortgage, you’ll want to double-check that all the information in your credit report is accurate. Identity theft, misapplied payments, inaccuracies in personal information, or incorrect account details can all impact your credit—and these errors can cost you when a lender is setting your mortgage rate.
It’s up to you to dispute any errors on your report, and Sindeo is here to show you how to make it happen. Click here to learn how to fix mistakes on your credit report.
If you do have a mistake on your credit report, keep these tips in mind as you work to repair your credit.
Uncle Sam has a long memory: most hits to your credit—like late payments and accounts sent to collections—will be removed from your credit report seven years after the fact. But money owed to or guaranteed by the government—such as taxes or student loans— stays on your report indefinitely, or until seven years from the date your balance is paid off.
Prevention is quicker than the cure: improving your FICO® Score by establishing a good record of on-time payments takes time, but a bankruptcy or multiple late payments can lower your FICO® Score rapidly.
You can’t erase your mistakes: if you’ve had trouble with an account in the past—like late or skipped payments—closing the account won’t remove it from your credit report until its seven years are up, even if you’ve paid off the balance.
Borrowers beware: be on the lookout for tempting credit repair scams. In many cases, anything a credit repair agency can legally do for you, you can do for yourself at little-to-no cost—if it sounds too good to be true, it probably is.
This blog post is an excerpt from “Credit Counts: How Better Credit can Help you Score a Better Mortgage.”
Climb Real Estate provides this information to the public and our clients and does not guarantee its accuracy. Climb Real Estate does not necessarily represent the seller nor the marketing company in any way. For buyer representation, contact Climb or learn how to buy new developments.