A June study by the U.S. Public Internet Research Group found that a shocking 79% of credit reports contains mistakes. What’s more, in 1 out of 4 reports, the mistakes are serious enough to result in a denial of credit.
Time Magazine, 12/6/2004

I have always preached the importance of understanding credit thoroughly for real estate investors. It is a 2 tier sword – you always to vigilantly maintain your own good credit ratings but you also wants to understand the intricate workings of how FICO works because when you are selling / selling your foreclosures – the quality of the home buyer will determine how long will it takes to close the deal and more importantly it will shadow something called Seasoning of Title that will also trash your chances of collecting the big fat check if you have not held the property for 12 months.

The Time’s article also goes on to explain how starting from December 1, 2004 consumers in the United States will be allowed to receive – for free – one credit report from each of the three major credit bureaus every 12 months, thanks to the Fair and Accurate Credit Transactions Act.

Once informed of a discrepancy, the bureaus have 45 days to fix the problem, but generally do so within 10-15 days.

Timetable to enroll this
Consumers in Western States December
Consumers in Midwest , March 1st 2005
Consumers in South, June 1st, 2005
Consumers in the East and U.S. Territories on September 1st, 2005.

Toll free number to call is 1-877-322-8228.

Another good resource is a new website www.annualcreditreport.com . Do print the report once it pops up, you cannot save it. Once you close the window its gone.

You can also spread the free report from three bureaus – Equifax, Experian, TransUnion – over the year so that will give them time to fix any errors you find.