April 20, 2015
Some borrowers who want to apply for an FHA loan find their applications held up by problems with what is on their credit report. Are you finding outdated or even erroneous information on your report? There is some good advice for those who find themselves in this predicament, thanks to a government website called ConsumerFinance.gov.
A page there titled, “How do I dispute an error on my credit report?” has some very good advice about corrected errors on your credit report, starting with:
“Contact both the credit reporting company and the company that provided the information. You should explain what you think is wrong, why, and include copies of documents that support your dispute.”
When you deal directly with a creditor, there are certain types of disputes the credit will investigate. According to ConsumerFinance.gov:
“Generally, the types of disputes creditors and furnishing institutions investigate when you file disputes with them directly relate to:
–Your liability for a credit account or debt with that entity furnisher (for example, whether it is your account)
–The terms of your credit account or debt with that entity (for example, how much you owe)
–Your performance or other conduct on an account or relationship with that entity (for example, whether you are paying on time)
–Any other information about your account or relationship with that entity relevant to a credit report (for example, your creditworthiness)”
Are the cases where a creditor will not investigate? According to the website, yes. Those situations include There are certain types of disputes that creditors or furnishing institutions do not have to investigate if a dispute is directly filed with them. These include disputes about the following:
- Information that identifies you (generally at the beginning of the credit report) such as your name, date of birth, Social Security number, telephone number, or address
- The identity of past or present employers
- Inquiries or requests for a consumer report
- Information derived from public records, such as judgments, bankruptcies, liens, and other legal matters (unless provided by a furnisher with an account or other relationship with you)
- Information related to fraud alerts or active duty alerts
- Information some other creditor or furnishing institution gave to the credit reporting company
When communicating directly with a creditor, be sure to include a copy of the portion of your credit report that contains the disputed items and circle or highlight the disputed items. Never send originals. Mail your letter of dispute to credit reporting companies via Certified Mail and ask for a return receipt. This insures you have a paper trail on your dispute and you can track when it was received.
If you have been the victim of identity theft, follow the advice of ConsumerFinance.gov and visit the Federal Trade Commission official site page for creating an identity theft report.
Do you have questions about FHA home loans or refinance loans? Ask us in the comments section. All questions and comments are held for moderation.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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