Spotting Mistakes on Your Credit Report

Before you buy a home in Boca Raton Florida, you should obtain a copy of your credit report and review it for mistakes. Common mistakes occur all the time on credit reports, and they can end up lowering your credit score substantially. Lenders are requiring higher minimum credit scores these days. If you have a score over 700, you will receive the best interest rates. Scores below 500 will not qualify you for home loan or even a car loan. Your creditors report your credit history to the three major credit Bureaus - Experian, Equifax, and TransUnion. You can order a free annual report from all three agencies so you can review it for accuracy and dispute mistakes and errors. Here are some negative items and errors that you should look for so you can dispute them and raise your credit score:

• Any late payments or collections that are more than 7 years old. Late payments and negative items drop off your report after 7 years.
• Paid accounts. All accounts that have been paid in full should reflect a zero balance. Collection agencies may not always remove the items if they are unaware that you have paid the bill directly to the creditor. Keep copies of cancelled check. You will have to dispute the item in writing to the major credit bureaus so they can take it off by sending them proof of payment. 
• Accounts that do not belong to you. Incorrect accounts may be a mistake in identity or there could be identity theft fraud on your account. You should report the mistake to the credit bureaus immediately. If you suspect identity fraud, file a police report.
• Look for accuracy regarding that original dates you opened your credit accounts.
• Make sure your credit limits and available credit are accurate. If they are not, contact your credit card company. It’s a good idea to pay off your credit card balances in full each month or make more than the minimum payments. Don’t go over your credit limits.
• Verify that the types of your credit accounts are listed correctly.
• Check reason codes that are negative and find out how to improve your score.

Maintaining good credit is important because it affects the loan rates you receive and could affect your chances of obtaining a job. You should be proactive in making sure your credit report is accurate. Eliminating mistakes can improve your score by as much as 30-40 points so it is important to check your credit on an annual or semi-annual basis.