When applying for housing
assistance, every program has their own qualifications. However they all
have one item in common. You, the homebuyer, must be approved for a
mortgage. Your mortgage down payment needs will help be determined by
your credit score.
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It is very important for you to know what is in your credit report, or if you know that you might have less than perfect credit, you might want to seek credit counseling.
It also very important in understanding your rights when it comes to your credit reports. The following information is an excerpt from a HUD website.
Your Rights Regarding Credit Repair
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No one can legally remove accurate
and timely negative information from a credit report. The law allows you to ask
for an investigation of information in your file that you dispute as inaccurate
or incomplete. There is no charge for this. Some people hire a company to
investigate on their behalf, but anything a credit repair clinic can do
legally, you can do for yourself at little or no cost. According to the Fair
Credit Reporting Act (FCRA):
- You’re entitled to a free report if a company takes “adverse action” against you, like denying your application for credit, insurance, or employment. You have to ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
- Each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it. The three companies have a central website, a toll-free telephone number, and a mailing address for consumers to order the free annual credit reports the government entitles them to.
- Mail your Request Form to:
Annual
Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
- It doesn’t cost anything to dispute mistakes or outdated items on your credit report. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider.
Helping Yourself
Step 1: Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of any documents that support your position. In addition to providing your complete name and address, your letter should identify each item in your report you dispute; state the facts and the reasons you dispute the information, and ask that it be removed or corrected. You may want to enclose a copy of your report, and circle the items in question. Send your letter by certified mail, “return receipt requested,” so you can document that the consumer reporting company received it. Keep copies of your dispute letter and enclosures.The links below will take you to a variety of credit reporting services and credit counseling. Just click on the option that best suits your needs.
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