How to Fix an Error on Your Credit Report

A study by the Federal Trade Commission released on February 11, 2013 found that one in four consumers had errors on their credit reports that might affect their credit scores and, in turn, lead them to pay more for loans. “These are eye-opening numbers for American consumers,” said Howard Shelanski, director of the FTC’s Bureau of Economics, in a released statement. The results, he said, should make it clear that consumers should check their credit reports regularly. “If they don’t, they are potentially putting their pocketbooks at risk.”

The release of the study coincided with a report on CBS News’ “60 Minutes” called “40 Million Mistakes: Is Your Credit Report Accurate?”. Should you be worried about serious mistakes in your credit reports?

Of course you should. Whether it’s 2%, 5% or 20% of reports that credit repair contain errors serious enough to create a problem, you’ll never know which camp you fall into unless you check your credit reports yourself. The Consumer Financial Protection Bureau recently reported that fewer than one in five consumers review their credit reports each year. Considering that everyone is entitled to at least one free copy from each major agency each year, that’s pretty pathetic. Are the rest simply assuming things are OK, or perhaps too worried what they will find?

Consumers are entitled under the law to receive a free credit report annually from each of the three major credit bureaus — Equifax, Experian and TransUnion. The FTC study participants were encouraged to dispute errors that might affect their credit scores. Of those who did, four out of five experienced some modification to their credit report, and slightly more than one in ten saw a change in their credit score after the modification.

One of the ways I help potential home buyers is to go over your credit report with you in great detail and provide you with information on how to have inaccurate information removed. I will also give you information on ways you can raise your credit scores. One of the best ways to raise your score is to keep your debt less than 30% of available credit and pay your credit card bills in full each month. If you have no credit score, I will help you find ways to establish credit so you can realize the dream of homeownership.

If you have questions about applying for a mortgage or would like more information on how to raise your credit score, please send me a request by email. I will send you our “Improving Your Credit Score Tips” brochure. These simple ideas have helped hundreds of borrowers realize their dreams and we would like to help you realize yours!

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Sources: Kiplinger, ASK, mortgageqna,Bankrate,

Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 771-2617 if you are looking for a home loan in North Texas and Southern Oklahoma.  Click here to visit Michelle’s website and apply for a loan.

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