CREDIT REPORT ERRORS COST MONEY.

It does not matter who is at fault, the creditor reporting the wrong information to the bureaus or the client failing to request a "paid in full" letter after settling a debt. In all instances the borrower sees the effect when it comes time to apply for a loan: high rates that translate into high payments or a flat out denial. What is the borrower to do may you ask?
Steps to follow:
1. Request your credit report, you are entitled to one credit report from each bureau free of charge once a year.
2. If you see some items you do not agree with, contact the creditor who reported them and ask for explanations.
3. Make sure that the issue is resolved to your satisfaction or else, file a complaint demanding an investigation. The bureaus will note this request on your report. There is a 30-day period when the bureaus MUST prove the case against you or remove the disputed items from your report.
4. If you owe the amounts and agree to settle, ask for the terms in WRITING before you send any money. Do not succumb to collectors who want checks by phone now, you may find out later that you still owe.
5. Ask for a "paid in full" letter for your records, if the same debt shows up with another collection outfit, you will have the proof. Make sure that the letter is also sent to the bureaus and check your credit again to make sure that the items are corrected.
6. Public record items such as judgements require one more step: satisfactions must be recorded with the court where the judgement was granted: in my long career as a Sr. Mortgage Consultant, I have seen instances where satisfied judgements, tax liens, bankruptcies have remained open in clients' reports for years without them knowing.

I do not want to sound alarmist but those are things that happen. Lenders are very strict during this period of high foreclosures and delinquencies, try to maximize your chances to be approved for a loan by taking some simple steps that will ultimately save you money. You check the oil, the tire pressure and other systems on your vehicle, why don't you take the time to do the same with your money saver?