WARNING – FIND OUT WHY YOUR CREDIT REPORT IS WRONG!
 

Do you know what your "credit score" is?

Over the last 3 years the mortgage industry has developed a new way determining whether or not to offer a home buyer a mortgage. It is called credit scoring and from now on it will be the most important number in our financial lives.
 

Credit scores are 3-digit numbers generally between 400 and 800 and are used to determine both your credit rating and the potential mortgage rate you will be offered. The information below is a general guide to how this works. PAR represents the base cost of money for any particular loan program.
 

Credit score Credit rating Mortgage rate
750+ AAA PAR minus 1/4%
725-749 AA PAR minus 1/8%
680-724 A PAR
620-679 A- PAR plus 1/2%
620 B, C, D - Subprime PAR plus 2%, 4%, 6%
 

Each of the three major credit reporting bureaus has a different way of calculating a person's credit score but the systems are all very similar. Credit scores are determined by factors listed on your credit report over the last 10 years.

These factors include all of the loans you have had in the last 7 to 10 years and whether or not we have made the payments on time.

This includes installment payment loans such as mortgages or car loans as well as revolving payment loans such as credit cards and student loans.

This also includes any loans you have co-signed for.

These factors also include any tax liens, bankruptcies, foreclosures and judgments and, most importantly what the current status of each of these is. Finally your credit reports include any credit inquiries or requests you have made for credit to be extended to us within the last 6 months, whether or not the credit was approved and used.
 

The purpose of credit scoring
The credit scoring system was originally supposed to reduce the amount of time it took underwriters to determine whether or not to offer a loan applicant a loan. The idea is to allow a computer to analyze a loan applicant's credit report and calculate a credit score before a loan underwriter spends time on the loan. If the borrower's credit score met the lender's minimum acceptable guidelines the loan application would then go to a human underwriter to be completed.

For higher credit scores this may even result in lower than published interest rates on mortgages being offered to the borrower. But if the score was below the lending institution's guidelines, the loan could either be denied without having to spend a lot of underwriter's time or approved under higher mortgage rates. This system works and is viable only if your credit report is accurate; and this is where the problem begins.
 

The problem with credit scoring
Almost half of the working population in the United States either has inaccurate information on their credit reports or even outright errors.

In either case the result for half of us is a credit score lower than we deserve. The lower credit scores are causing borrowers to either be denied for mortgage loans they should not be denied for or being offered mortgage rates above what they may really deserve. Until 3 years ago the problem with credit reports being inaccurate was not as big a deal as it is today. Underwriters used to be able to review a credit report and make a determination on their own as to what to do.

Today underwriters, lenders, brokers and virtually everyone involved in the mortgage lending process are slaves to the credit scoring system, and if your credit report is showing inaccurate information, you will not qualify for the best loan available. And it only takes a couple of problems to destroy your credit.

The worst time to find out your credit report is inaccurate is when you are trying to purchase or refinance a home or investment property. Because of the time constraints on completing a home purchase or getting the lowest interest rate possible in a refinance situation, you don't have the time to fix the credit report before having to close on your loan. You have to make sure your credit report is accurate at all times. Some errors, of course, could emerge if you decide to pre-qualify for a loan.
 

Most common problems and errors on credit reports
• Credit cards and other debts showing that do not belong to the borrower.

• Late payments caused by mail or weather disruptions not stipulated as such on a credit report.

• Late payments that never occurred.

• Loans that don't exist.

• Former spouses still carrying each other's credit lines on their individual reports.

• Credit lines that were requested but never used still showing open and available--such as store cards applied for in order to get the discount when buying goods.

• Bankruptcies, foreclosures, tax liens or other judgments that have been completed, concluded, satisfied or discharged not reflecting as such.

• Old loans for which we co-signed wherein the guarantee is no longer required.

• Previous inclusion in a consumer credit counseling situation that has been concluded or is no longer current but reflecting as such.

• Identity theft, which, in the Internet era, is increasingly common.
 

Making sure your credit report and score are accurate

The following are detailed instructions on how to make sure your credit report and score are accurate. Check your credit report once a year. Doing it with your taxes is probably easiest. Immediately fix any problems using the information listed below. Also, give a copy of this report to anyone else you care about.

• Print the form letters included at the end of this report and follow the instructions below or write a letter to each of the three credit bureaus below to request a free copy of your credit report. If you were recently turned down for credit put this in your letter. Provide your full name (and spouse if applicable), social security number(s), most recent 2 years residence address, and sign at the bottom (both signatures if applicable). It takes 2-3 weeks to receive your credit report.

• Upon receipt of your credit report, write another letter disputing all incorrect items. Enumerate each item listing the vendor, account number, and reason for the dispute. Ask the credit bureau to remove the derogatory information or to delete the credit item entirely. Note that correct derogatory information may be removed after 7 years and a bankruptcy after 10 years.

• If the credit bureau can not verify the derogatory information with the vendor within 30 days, they are required to remove it by law.

• At the end of your letter, ask the credit bureau to send you a corrected credit report after all corrections are made.

• You should review your credit report with each bureau annually to make sure no new incorrect information appears on your report.

I hope you have enjoyed this special report. We currently have over 40 creative loan programs to fit your needs. Please contact us at 203-483-0061 to set up your FREE No-Obligation consultation where we will meet to tailor a program to fit your needs and comfort levels for monthly payment and investment.

Sincerely,
Chris Rivers
Chrysalis Funding
150 W. Main Street
Branford, CT 06405

Phone: 203-483-0061

P.S. If you would like to get started now please click the following link or image below to fill out a Free No-Obligation Secure Online Application and we will contact you to schedule a free consultation to help you get the home of your dreams with the best terms available...regardless of your credit!

P.P.S. If you have anymore questions then here is the contact info for the credit bureaus

• Equifax, Phone 800-685-1111
• TRW - Experian, Phone 800-682-7654
• TransUnion, Phone 800-888-4213