credit report - Credit History Stopping You From Getting Mortgage Loan You Want? Learn What's On Your Credit Report

Have you ever been denied a credit card or home loan, and you simply just didn't know why? The credit provider or lender told you that your credit history just wasn't up to par in order to qualify for the line of credit or loan. Well sure you made a few mistakes in the past, perhaps a few late payments, and of course there is some debt that you are aware of. But then again, doesn't everyone? You certainly didn't believe that your credit report history was bad enough to not qualify for a credit card or loan, even at a higher interest rate. Let me tell you a secret, many people have absolutely no idea what is on their credit report! Your credit report has, in the past, been something not readily available to you, or an expensive item to attain. Many people are just not aware that your credit history can determine your financial activities for your entire life. This is becoming more prevalent as credit awareness and education is deemed necessary. So it is important to always be apprised as to what is really on your credit report! There can be either two items on your credit report: accurate or inaccurate. Credit providers may have reported inaccurate information on your report! Mistakes happen that you may not even be aware of. A move, changed phone number, lost mail, open credit cards from 15 years ago that you simply didn't know existed, and other easily overlooked or forgotten items do happen, more than one might think. Hey, who has time to keep track of every single financial item when life, as we know it (busy, fast paced) is hardly ever forgiving? Many people get down on themselves for having a bad credit score. But this is not necessary! It is not a reflection of who you are. Really. You may have never been educated on how to handle your finances or extenuating circumstances may have greatly effected your credit. So in order to stay on top of your credit history, and not be blind sided by an embarrassing, unexpected rejection, check your credit report! Credit reports are no longer some far off document that is hard to get a hold of. After all, it is YOUR credit report, right? Shouldn't you have easy access to it? Well somebody else thought you should too, and the Fair Credit Report Act (FCRA) was enacted just for this reason. Here are the terms: ? Every person is entitled to a free credit report if a credit company takes an adverse action against you, or if your application for credit or insurance is denied. ? You are entitled to a free credit report if you are unemployed and plan to get a job in 60 days, are on welfare, or if your report is inaccurate because of fraud including identity theft. ? Equifax, Experian and Transunion, all nationwide consumer reporting companies, are required to provide you with a free copy of your credit report every 12 months. Now there is no excuse for you not to keep on top of your very important credit report. All you have to do is go to www.annualcreditreport.com and request your free report! Or, you can call 1-877-322-8228. Always check your credit report before you apply for any mortgage loan or line of credit. So you have your credit report, what next? Evaluate each item as accurate or inaccurate. Which items can you clear quickly by simply closing a card or calling a creditor and paying off an old debt? If there are inaccurate items, you must make a dispute in writing with supporting information. This means copies of any documents that support your claim. You must send this information to both the credit consumer company as well as the credit provider. If your dispute is accepted and changes are made, the company must send you the changes in writing as well as send you a new credit report with the inaccurate information removed. The credit provider may not make the same claim against you again. If you find inaccurate information and get it fixed, then your credit report will be better, and another step towards getting that lower mortgage rate has been made! If there are negative items that are accurate on your report, then you must take action towards fixing them! If you are not sure what to do, consult a financial advisor at your bank who can help you set up a repayment plan, consolidate debt if need be, or even investigate debt forgiveness. Negative items will stay on the credit report up to seven years, but if you make an effort to begin paying back debts, and show you are serious about qualifying for a mortgage loan, then you are yet closer to proving to a mortgage lender that you are both willing and able to pay back a loan. And these two things: willingness and ability are exactly what a lender evaluates when considering a person for a loan. Fixing your credit of accurate negative items takes personal effort and time. However, fixing inaccurate information that can greatly increase your credit score, can be done fairly quickly. If you are serious about getting a mortgage loan, or even a better mortgage loan to save you money, consult your credit report before you take any steps at all! By understanding where you stand, you can either choose to go forward and find a mortgage loan that is within your limits, or repair your credit before making a move. Even if you are not considering a loan or line of credit, always stay on top of your credit history because you never know when a better score can save you time, money, and huge headaches! John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/ Article Source:http://EzineArticles.com/?expert=John_R._Blakefield credit report - 5 Ways To Raise Credit Score It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult. There are more than 30 million people in the United States that have credit scores under 620 and if you're probably wondering what you can do to raise credit score for you. Here are five simple tips that you can use to raise credit score. 1. Get a copy of your credit report Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information. Your credit report should come from the three major bureaus: Experian, Trans Union and Equifax. It's important to know that each service will give you a different credit score. 2. Pay Your Bills On Time Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago. Missing just one months payment on anything can knock 50 to 100 points off of your credit score. Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you. 3. Pay Down Your Debt Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn't matter whether you pay off that balance a few days later or whether you carry it from month to month. Most people don't realize that credit bureaus don't distinguish between those who carry a balance on their cards and those who don't. So by charging less you can raise credit score even if you pay off your credit cards every month. Lenders also like to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score. 4. Don't Close Old Accounts In the past people were told to close old accounts they weren't using. But with today's current scoring methods that could actually hurt your credit score. Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy. If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you. 5. Stay Out Of Bankruptcy Bankruptcy is the single worst thing that will destroy your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from. Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years. The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years. It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time. Copyright ? 2005 Credit Repair Facts.com All Rights Reserved.