Your Credit Report is Determined By Your Banker

Your Credit Report is Determined By Your Banker

You may think you have a marvelous credit report, be cautious of the mistake factor. Just as you receive mail with your name and address misspelled, your credit report can have errors just like anything else. Whether it is someone’s typing over site, out of date info or even mistaken identity, errors go on more regularly than we all can imagine.

According to the FTC, both the credit reporting agency and the establishment that provided the information to the credit reporting agency have duties for correcting wrong or incomplete information in your credit report.

While checking your credit report, if you locate incorrect information on your credit report, without hesitation notify the CRA in writing directly:

1. Tell the Credit reporting agency what information you believe is incorrect on your credit file. Send copies, never originals of documents that support your position.

2. Be sure to providing your entire name and address, your letter should clearly describe each entry in your credit report that you question. Tell the facts and why you are challenging the information. Sending a copy of your credit report with the items that are not correct highlighted can be help full.

3. Although you may imagine your grounds for writing is self explanatory, be certain to ask that the over site be fixed.

4. Send off your correspondence by certified mail, return receipt requested so you can document when the credit reporting agency received your letter. Be sure your letter is dated, and never forget to keep copies of everything you send.

Credit reporting agency must look into the item(s) in question, generally within 30 days unless they assume your dispute is trivial. They also must send on all relevant data you send them to the company that gave them the information for your credit report.

After the establishment receives notification of a dispute from the credit Bureau, it must review and go over all relevant information rendered and report the final result back to the credit reporting agency.

If the company finds the disputed information to be wrong, it must advise all nationwide credit reporting agency so that they can change this information in your credit file.

Disputed information that just can’t be affirmed must be erased from your credit file.

Inaccurate information must be fixed by the credit reporting agency.

Incomplete information must be corrected by the credit bureau.

Any item that belong only to another person must be erased by the CRA.

NOTE: Credit repair can be long and unexciting, the significance of being well-informed of your rights can’t be emphasized enough so be sure you take time to digest this information.

Many home buyers assume that “mortgage companies” are banks that lend their own money. In fact, that is not always the case; you may find that the company is a mortgage broker, a lending institution or a bank.

A banker is a direct lender; it lends you its own money or the money of people who have deposited into the bank, although it often sells the loan to the secondary market. If you walk into you local bank and talk to the loans officer or Mortgage Specialist, they’ll be loaning the banks money and working to create a profit from the loan.

A mortgage broker is a middleman; he does the loan shopping and analysis for the borrower and puts the lender and borrower together. Many of the lenders through which the broker finds loans do not deal directly with the public (hence the expression, “wholesale lender”). However, they will also shop the banks as well to find the best rate.

A bank can give you direct loan approval, whereas a broker gives you information second-hand. However, many banks are limited in what they can offer, which is essentially their own product. You’ll also find you need to do the leg work to find the best rate. You will need to apply at multiple banks and be approved by several, bringing offers back and forth to get the best interest and terms. In addition, if you present your loan application in a poor light, you’ve already made a bad impression.

A mortgage broker charges a fee for his service, however they rarely charge you the borrower, it is usually the lender who pays the fees and therefore the service is free to you. Mortgage brokers have access to a wide variety of loan programs. He also may have knowledge of how to present your loan application to different lenders for approval. As a borrower it is wise to have both a mortgage broker and a banker on your team.

Only you can answer what is the best choice for yourself. If you have a good relationship with your bank and the mortgage specialist you may not need the services of a broker. However, if you do not, then using a broker to shop for the best mortgage for you could save you thousands of dollars without cost a cent upfront.