Luckily this blog is anonymous so I can talk about whatever I feel like! Well today I got a rough phone call from the Sister in Law. She was looking into buying a home with her boyfriend. Well, when they went to get pre-approved she was met with a a very low number due to the boyfriend’s credit score. She was in the top 10% of all Americans! While he is below sub-prime.
So, there are bloggers out there (and I am sure “real” journalist) that will argue Americans are too obsessed with credit scores. My favorite one is easily, Tough Money Love’s View. He truly hates the credit score industry but you know what – ignoring it is not going to get my sister in law a home.
It is your Responsibility to Know What is on Your Credit Report
The easiest way to get your credit report is Annual Credit Report. The Federal Trade Commission gives us the perfect definition of “what Annual Credit Report is?”
AnnualCreditReport.com is the ONLY authorized source to get your free annual credit report under federal law. The Fair Credit Reporting Act guarantees you access to a free credit report from each of the three nationwide reporting agencies — Experian, Equifax, and TransUnion — every twelve months. The Federal Trade Commission has received complaints from consumers who thought they were ordering their free annual credit report, but instead paid hidden fees or agreed to unwanted services. Don’t be fooled by TV ads, email offers, or online search results. Go to the authorized source when you request your free report.
This is not referring to those annoying singing dudes. They are actually paid actors for a company that jumped on the bandwagon and seem to be doing well for themselves with some minor legal troubles!
MyJourney, is not perfect – actually no where near it! When I first started looking for a home is when I learned of all the problems with my reports. I obviously freaked but then started my letter writing campaign to get everything fixed.
If you have never gotten your report – please stop reading and get your report. You will not get your score, but that is secondary to fixing the garbage that may be on there. If you have a need for your score, check out CreditKarma.com,
Credit Karma™ is always free and will never charge for access to credit scores or its interactive tools. Credit Karma™ works by selling advertising on the site and using those advertising revenues to pay for the credit score costs. Rest assured, Credit Karma™ NEVER sells or shares your private information as part of our strong belief in consumer advocacy. View what others are saying about us in the press.
I have used CreditKarma and am happy to report it is a great free tool to track your credit score. How happy would the Sister-in-Law have been if they found out 6 months ago that the boyfriend’s score was below 600? The point of this post is not to give a full review, but if you want one check out Bargaineering’s Review of CreditKarma.com. If you’re feeling flush, you could even opt to sign up and pay for a credit report monitoring service, which keeps a daily watch on changes to your credit reports.
GET YOUR CREDIT REPORT AND FIX ERRORS NOW!
I am no where near an expert in this area, but I can provide some form letters to help out if people have an interest.
Check your Credit Score!
Thanks for referencing my contrarian views about the credit score. Your advice to sister in law about checking up on boyfriend's financial history is sound. I don't consider knowing or even occasionally checking your credit score to be unwise. On the other hand, so many consumers become obsessed with their score that they allow it to control their behavior beyond reason.
I agree that credit scores have become an obsession for many, although in this case it's probably a good idea to have checked on these things and to have had money discussions with the boyfriend, especially before making a huge decision like buying a house. On the other hand, in my opinion people use credit way too much as a crutch, and the credit score is seen as their ability to live the good life – when in fact they should be trying to save, pay cash and build wealth -without need for a credit score (beyond maybe buying a house).
You are 100% Correct, but no matter how much they save (within reason) they'll never be able to afford a home in the Philly area…so the credit score is a necessary evil.
This means that credit report of the homeowner will be severely affected. Secondly the homeowner will still have to vacate the premises. Therefore this option should be considered as one of the last alternatives for those that wish to stop the foreclosure process.