mortagesandforeclosures

by Vincent Polisi

In today's economy, it is more difficult than ever to qualify for a mortgage. With delinquencies on the rise, your credit score needs to be good, if not stellar, for lenders to say yes.

Very few people understand everything they need to about credit. Even people with excellent credit are confused about exactly how credit works!

This leads us to the simplest question of all. What is a credit bureau?

A credit bureau is a huge repository that stores date on most Americans. This information includes names, social security numbers, addresses, employment and, of course, credit history.

Some people think that when something on their credit report is incorrect, the credit bureau is at fault. Many times, a lender will hear the statement that Experian is not reporting my car correctly.

Actually, this is not true! It is the creditor that has reported the account incorrectly.

The credit bureaus collect data, but they do not verify anything. What they report is simply the data that creditors supply them with. This means that a creditor can report anything to the credit bureau and it will appear on your report, regardless of whether it is true.

Millions of Americans find errors in their credit files every year. These inaccuracies can be costly, leading to increased rates, credit denial and sometimes even missed employment opportunities.

Since without your involvement, your credit report is simply a large compilation of unverified information, the federal government has numerous consumer protection laws in place.

It is imperative that you understand that the only time information in your credit file is verified in any why is if you file a dispute with the credit bureaus.

When a credit dispute is filed, it is up to the lender to prove that the item they are reporting is accurate within 30 days. If they do not do this, the credit bureau is required by law to delete the information from your report.

One of the most important keys to keeping your credit score up is consistent monitoring of your report. There are many great services to help make this easy, but the most important key is consumer knowledge and involvement.

About the Author:

Vincent Polisi is President of Finance the Dream. Finance the Dream is the nations top Lease Purchase and Lease Option program, offering homes throughout the United States. Finance the Dream prides itself on offering a comprehensive home ownership program its clients, including credit reporting and credit repair.

Get all the information and photos:: http://mortgagewide.info/understand-credit-bureaus-and-build-a-score-you-can-be-proud-of/