Credit rating Alabama

But when my husband and I went through the pre-qualification process to buy a home we found out that identify theft had lowered Matt’s credit score, and a mistake with an automatic transfer of his car payment one month had also negatively affected it. My score was pretty good, but by itself it wasn’t enough to get us more in the house price range we credit rating Alabama were hoping for at that time. Turns out we aren’t alone in facing these kinds of credit errors.

Public Interest Research Groups, a consortium of advocacy groups, reports that 22% of credit reports list the same loan more than once. About 79% of credit reports contain errors credit rating Alabama – and 25% of credit reports have errors serious enough to result in your credit application being rejected, according to the PIRG data. The experience showed us how important it is to check credit rating Alabama your credit score and credit report early on in the home search process so that you can address any errors or make improvements. This was the credit rating Alabama first time either of us had pulled credit rating Alabama our scores and reports and really looked at them closely.

There’s definitely a credit rating Alabama feeling of nervousness that takes over when you’re waiting for your loan officer to show you your score and report; it’s almost like getting the results back credit rating Alabama on a test you aren’t so sure you studied enough for. free credit report no credit card needed Your credit report gives lenders an overview of your credit history. It lists the types of credit you use, how long you’ve been using them, if you stay current credit rating Alabama with your bills, and plenty of other information. Your credit score is a number that is generated from the information credit rating Alabama in your report and basically tells a lender how much of a risk you are with repaying debt. As a borrower, you want to make sure you’ve got the highest credit score possible so that you can get the best mortgage rates and so that you credit rating Alabama also know how much house you can credit rating Alabama afford. In addition to the identity theft issue my husband faced, we also found out about the automatic car payment error and how it affected Matt’s score. The payment failed to go through one month, and Toyota reported it to credit rating Alabama the credit bureaus, even though Matt  made credit rating Alabama the payment as soon as he realized what had happened. annual credit report request form In addition to that, found out much later, when we credit rating Alabama were about to close on our house, that my credit report reflected an credit rating Alabama incorrect date of separation from my credit rating Alabama graduate program, which impacted our debt-to-income ratio, another factor lenders use to determine your loan amount. The good news is that we were able to raise the amount we were pre-qualified for over time by addressing and fixing the errors on our reports.

We were initially pre-qualified for a loan in the low $100,000s, but over the course of about six months we improved credit rating Alabama our credit enough to qualify for a larger loan. Dealing with your credit can be frustrating, but it’s worth it if you want to get the loan you’re expecting.

Some things you can credit rating Alabama do to raise your score: Kristin Offiler is a freelance writer who recently completed credit rating Alabama a Master of Fine Arts in Creative Writing. She lives happily in her new home in the Northeast with her husband and dog. A HomeBuyers Story (Part 1): Deciding When to Buy A HomeBuyers Story (Part 2): Saving Money credit rating Alabama for a Home A HomeBuyers Story (Part 3): Getting Pre-Approved for a Loan Learn credit rating Alabama more about the importance of credit scores and credit reports, and how you credit rating Alabama can get yours in order in this Credit Advice section on the LendingTree web site. the free credit report Keywords: Buying a Home, credit, credit rating Alabama credit score, personal finance from a person who signed up for multiple credit credit rating Alabama cards in college to get a free pair of oakleys and former debt collector: credit rating Alabama in terms of overall credit score, its better to pay off credit cards in installments rather than lump sum payment.