Credit Card Debt Management

If you are thinking about buying a home, do not pass go and do not collect any loan applications until you have printed a recent copy of your credit report. It is always, always better to walk into any loan process armed with knowledge.

David Myers recently fielded a reader question in his news column regarding credit discrepancies. The reader was basically facing the prospect of settling for a higher interest rate or losing the house deal altogether and forfeiting a hefty deposit, all because of a credit report mistake that needed correction. There’s really no way to rush the process of correcting a credit report mistake. And of course, to fix it, you have to find it. You don’t want the lender pointing it out to you in the final stages of the real estate game.

Yes, a mistake on the credit report can have serious consequences. The first step is to bring the mistake to the attention of the appropriate creditor as well as the three major credit bureaus - Equifax, TransUnion and Experian. These agencies will help set the record straight, but it could take more than a month. Always communicate in writing by certified mail, keep solid records and follow up to ensure your request is being processed.

Because fixing your credit report is a lengthy process, it should begin at the same time as the house hunting, if not before. Even better, financial diligence - and perhaps a monthly credit monitoring service - will help keep your credit report up to date so discrepancies aren’t even an issue when loan time rolls around.