The Fair Credit Reporting Act Guards Potential Home Buyers from Errors

The Fair Credit Reporting Act, or FCRA, was passed into law by Congress to make sure that the information on your credit report is legitimate. This Act gives you, as the consumer, many rights that you may not be aware of. This is important as a homeowner or as a potential home buyer because your credit report will establish whether or not you qualify for a loan. If you do qualify, the information on your credit report will serve as the foundation for what interest rate the mortgage lender offers you. If there are mistakes on your credit report, you could be denied for a loan or offered a higher interest rate than you should receive. Mistakes on your credit report can be costly.

Mistakes on Your Credit Report Are Often Overlooked Until You Buy a Home

A mistake can remain on your credit report for years and may go by unobserved until you try to make a major purchase like a home. Some mistakes are caused by the massive volume of paperwork that the three credit reporting agencies deal with each and every month, while other errors are typos or other clerical errors. There may be a mistake with your social security number, your loan application or even a variation of your name that can ruin on your credit report.

Property Buyers can Dispute Errors when Credit Report Mistakes Occur

Due to FCRA, you have seven fundamental rights in regards to your credit reports. These are:

-Lenders must inform you if you are refused credit (or loans) because of your credit report.
-You have the right to know what is on your credit report at any time.
-You can challenge incorrect information with the credit bureaus.
-Inaccurate data must be removed from your report or fixed.
-You can dispute inaccurate information with its source.
-Your credit report must not contain old information.
-Only those with your permission may look up your credit report.

The credit reporting bureaus are not accountable for the information on your credit report. To monitor whether or not the information is accurate is left up to the consumer. If you initiate a dispute, the credit reporting company is required to pursue it with you. The problem is that many individuals do not regularly monitor their credit reports, and therefore they are taken by surprise when they discover there is a mistake on their credit report. FCRA guarantees your rights as a consumer, but sadly many people do not use or understand their credit rights.

Vigilance is the Best Way to Protect Your Credit Report and Good Name

Please know that you may have to dispute information several times. Keep records of these disputes and any supporting evidence you use. It is always a good idea to dispute information at all three bureaus at the same time. These companies do not coordinate reports and there is no other means of ensuring that all inaccuracies are taken care of. Know your rights and the length of time particular data may stay on your credit report. Be vigilant, and you will be able to have confidence in your credit score.

About The Author:
In Phoenix, there are many great neighborhoods to buy homes, on the west side consider Avondale houses for sale with private pools">. Many people are looking at Apache Junction nearly new houses for sale in the East Valley.

Tags: FCRA, CREDIT REPORT MISTAKES, CREDIT REPORT

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Title:	The Fair Credit Reporting Act Guards Potential Home Buyers from Errors
Author:	Lee Bell
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The Fair Credit Reporting Act Guards Potential Home Buyers from Errors