In yesterday's blog we talked about the need to obtain your credit report from the 3 major credit reporting agencies-Experian, TransUnion, and Equifax. The reason for doing so was to have this information in front of you before you consider submitting your loan application to lenders.  Once you have these reports, you need to see what your FICO scores are.  If they not in the mid 700's, your chances of getting a good loan is poor.  This score is composed of many elements about you and your credit history-things like how many loans you have, what kind of payment history you have, what type of loans you have, etc..  A value is given to each of these elements, and a score assigned by each of the different agencies above.   

Assuming you are still eligible to purchase a Piedmont home or an Oakland home, your next step is to review each of the reports for the following information:

1. Your Credit History: Make sure that it is correct in every detail.  Pull out your credit card statements and check that the the payment amounts represented are the one shown in each of the three separate reports.  Go back as far as you can with your records to assure that each payment was correctly represented and paid as you show it.  Are there late payments recorded that are not correct?  Was an account shown closed that was not?  Do all of the credit card numbers match your cards?

2. Information About You: Make sure everything represented about you is accurate.  For example, if you find an old address that is wrong, note it.  Wrong information, or wrong work or residence histories can have a serious effect on your credit rating, so it is important that nothing be represented incorrectly.  Check for typing errors throughout.

3: All Account Details: Make sure that all of your payment histories, including paid off loans are represented.  If loans are shown outstanding that are not, it will have an effect on the final score.  Are loans being shown that are not yours?  Are loans that you do have not being shown?  Are cards being assigned to you that are not yours? 

 While this may seem like a lot of work, it is important that you take the time to review these things, and follow the procedures to submit the appropriate corrections.  This history will follow you for years, whether you want to buy a home, a car, or even an appliance, so commit to doing it correctly. 

Posted by Bruce Wagg on


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