Your Credit

Wondering about your credit. (Here's where to look.)

• Review line-by-line: search for errors, omissions, duplications, "common name" errors.
• Write out exactly what should be corrected and why on disputed items. You are allowed to add 100 words or less to your report.
• Credit Bureaus have counselors who will help you, as will we. This is a free service.
• Credit Bureaus are obligated by Federal Law to contact all creditors where mistakes were made. These firms must respond in writing within 30 days. Failure to do so obligates the Bureau to remove the disputed items from your records (Fair Credit Reporting Act of 1971).
• Work out a "deal" with merchants that you owe.
• Chapter 13 bankruptcies will stay on your record for 10 years.
• Chapter 7 bankruptcies will stay on record for 10 years.

Judgments, Garnishments, or Liens:

Liens, garnishments, etc., that are recent may indicate an unstable borrower. (Any judgments, garnishments or liens must be paid in full.  A clear credit report supplement or other evidence from the creditor that the judgment, garnishment or lien has been cleared must be obtained prior to closing.) IRS tax liens must also be paid in full as outlined above. Standard property tax liens, which are not yet due and payable, do not have to be evidenced as paid in full. A satisfactory letter of explanation from the borrower is required.

Delinquent Child Support:

Because of the seriousness of the delinquency/default, which in many states can cause incarceration, the child support payments must be brought current and specific documentation evidencing the fact must be in the file-NO EXCEPTIONS! There must be evidence from the credit-reporting agency that the payments have been brought current. A letter from the court or the legal authority responsible for collection in the city/state (e.g. district attorney, sheriff, etc.) is acceptable. A letter from an ex-spouse and copies of personal checks are not acceptable, nor is an agreed upon, but not yet completed, payment plan.