August 11, 2021
Do you dread the idea of looking at your credit report?
Some people delay looking at theirs because they are afraid of what they might see, or afraid they won’t be able to understand what they are reading in their own report.
Fortunately, there are some questions you should ask about your credit report that can give you a good start in the right direction–these questions will help you better understand what’s in your report and what a lender looks for when they review yours.
When you get your copy of your credit report from Experian, TransUnion, or Equifax, be sure to review the report once “cold”, and then review it again with the following questions:
Credit Report Accuracy: Open Accounts?
Are the accounts listed in your credit report open? Are there closed accounts on the list? Be sure to ask whether closed accounts should have fallen off your report by the time you view it.
Be sure to look at each account on the list and determine its status.
Does Your Credit Report Show Accurate Balances?
You will definitely want to check to make sure your credit report shows the correct balances on your open accounts.
Does Your Credit Report Accurately Show The Nature Of Your Accounts?
If you are erroneously listed as the primary account holder or the report otherwise does not accurately reflect your use of the credit account (as a co-signer, for example, rather than the main borrower) you should dispute this and have it corrected.
Does Your Credit Report Show Information About A Past Bankruptcy?
If so, does the credit report show a zero balance for debts that have been taken care of through bankruptcy? If not, you will need to challenge the credit report entries where appropriate.
Does Your Credit Report Show Accounts You Closed?
And just as importantly, does the account show that it was closed by you, the consumer, rather than by the creditor?
Important Things To Know About Your Credit Report
Challenging errors or old information in your credit report is a good thing, but some borrowers mistakenly believe that they or a third party can challenge accurate negative credit information in their reports.
While it’s true that you are free to file such a challenge, you should know that consumers or third-party “credit repair” agencies do NOT have the ability to remove ACCURATE credit information from a credit report regardless of the source of the challenge.
Don’t miss out on a home loan because of misinformation.