Its important to make sure the credit limit on each of your accounts is accurately reported to the bureaus. When creditors under report or dont report the limit at all, the bureaus assume your high balance is your limit. This under/non reporting of your limit adversely impacts your score, since your account balance will represent a higher percentage of the limit than if the full amount of the limit were reported.

Some courts are now holding that it is the duty of the credit bureaus to ensure that creditors report accurate limit information on all accounts. Disputing this type of inaccurate info can add many valuable points to your credit score.

It is especially important to check the accuracy of your credit report after the discharge of a bankruptcy. Many creditors stop reporting any information on an account once they receive notice that the account has been included in a bankruptcy filing. As a result of this, once the bankruptcy is discharged, those accounts still report as being in collection, charge off or some other similar status. Accounts reported in this manner will generally have a more detrimental effect on your credit score than if they were reported as discharged in bankruptcy.

Over 70% of all credit reports have some sort of inaccuracy. Its important to review yours carefully with the help of a mortgage professional.

Some creditors are very good at reporting negative information, but not so good at reporting positive information. For example, they may have reported your account as being in collections, but not report when it is paid. By federal law, you are entitled to get one free report each year from each of the 3 credit bureaus. Get yours and review them annually.

 

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