Owning a home is a pivotal moment in many people’s lives, and a key step towards financial independence. Research by Zillow showed that 74% of homeowners with a fixed-rate mortgage experience stable monthly housing costs, while a study by the National Bureau of Economic Research (NBER) found that homeowners have lower debt-to-income ratios when paying down their mortgage principal and accumulating home equity.
But too often mortgage applications are unfairly denied because of false credit report mistakes from agencies like Experian, Equifax, and Transunion. If you’ve had problems with your credit score or have been denied lending due to credit report errors, you have the right to fight back and restore your financial integrity.
Here is what you need to do next
If you were denied lending due to credit report errors, it’s important to act quickly. Here are some steps to take:
Step 1: Get Your Credit Report
First, find out why your car loan or mortgage was denied. Lenders are obligated to provide a letter explaining the reason and which credit reporting agency (CRA) provided the report. You might see names like Equifax, Experian, or TransUnion. Many lenders use a “tri-merge” report combining data from these three agencies, or a “residential mortgage report” from a reseller like CoreLogic Credco, Factual Data, Credit Plus, and LexisNexis. Then, obtain a copy of your credit report from the specified agency or reseller to review.
Step 2: Look for Mistakes
Next, review your credit report carefully. Check for anything that doesn’t seem right, like accounts that aren’t yours, incorrect personal information, or outdated data. You know your financial history best, so you can spot errors a creditor might overlook.
Step 3: Tell the Credit Agency About Any Mistakes
If you find errors, file a dispute with the responsible credit agency. This can be done online or by mailing a detailed letter via certified mail to guarantee a record of your correspondence. Make sure to clearly state what’s wrong and include any documentation that supports your case. The credit agency has 30 days to investigate and report their findings.
Step 4: Check What the Credit Agency Does Next
After their investigation, the credit agency will update you with the outcome. They might correct the errors, make modifications, or leave your report as is. If corrections are made, inform your lender about the update. If the errors remain, you might need to dispute it again or add a note to your report explaining the issue.
Step 5: Consider Legal Help
If mistakes stay on your credit report and continue to impact your lending options, contact a credit report attorney immediately. Robert F. Brennan is an experienced Fair Credit Reporting Act (FCRA) lawyer who can help you remove errors from your report and pursue damages for wrongful credit reporting. He offers a free consultation and frequently gets money damages for his clients.
Our goals
Credit report mistakes and errors can be overwhelming, but there’s hope. If you’ve been denied a mortgage or loan because of inaccurate information on your credit report, you have the right to dispute these errors and file a lawsuit. Don’t let false credit reporting damage ruin your life. Safeguard your rights and reclaim your financial narrative today.