Have you seen the ads in the newspapers and magazines or read the signs nailed to telephone poles: “We Fix Credit Problems?”  or “We eliminate bad debt.” It sounds like it should be easy  for your credit report to be spotless again.

The truth is, bad credit does not vanish by paying someone to remove it. Of course there legitimate credit repair organizations that can help remove inaccurate information from your credit report. But the reality is, they cannot remove accurate information.

However, it is important that you have inaccurate information removed from your credit report.

In order to do so, you must first obtain a copy of your credit report. We are all entitled to one free credit report per year from the three major bureaus.

These are Experian, Equifax, and TransUnion.

Be sure to review and look for any discrepancies including::

  • Late payments:
    •  There should be no late payments over seven old years on the report.
  • Collections:
    • The report should not show any collections or charge-offs of more than seven years old.
  • Payment records:
    • All paid-in-full installment loans and all collections that have been paid in full or settled for less than the amount due should show a zero balance.
  • Unknown Accounts:
    • You should be able to recognize all accounts listed on the report. It may be a simple mistake or it could be identity theft, either way you must deal with it immediately.
  • Original dates:
    •  Be sure the original dates you opened these accounts are accurate.
  • Available credit:
    • Credit limits on the credit report should match up with credit card statements.
  • Types of accounts:
    •  Be sure the accounts are as they should be whether car loan, mortgage or credit cards.
  • Reason codes:
    •  Be sure to read the reasons why your credit score is where it is, and report any disputes you may have with them.

The key to good credit is being proactive in reviewing your credit reports in a timely basis. If you find your credit score is a 680 or higher, removing minor issues may not be worth the effort and may even lower your score a bit.

Remember, your credit report and credit score are what will determine the amount of loan and interest rates you are able to obtain when purchasing a home. So stay on top of your credit report and do so ahead of deciding to purchase a new home.

Let me know what you think or if you have any questions regarding this or in purchasing a new home.

Rene Sabatini

Azure Realty Services


[email protected]