U.S. Real Estate Foreclosures Affect Credit Scores

With today’s current economy, more and more U.S. real estate homeowners are finding out how foreclosures affect their credit scores.  Homeowners facing foreclosure often as the question of what type of information can be found on one’s credit report and how does it get there.  Credit reports contain tons of information on consumers.  The only thing more stringent than a credit report is a criminal background check.  Social security numbers can be found on the report along with date of birth and other types of personal information.

Never neglect checking your credit score annually

Credit reports contain consumers purchasing history as well as debt history.  If one ever took out a loan or a mortgage, this information is present on the report.  As one can see, credit reports are very personal and can make the difference in obtaining a loan of any kind or not.  It is always a great idea to check one’s credit report annually.  This will keep one abreast on what is actually being reported on their personal credit report and one never knows when something might be wrongly listed there.

Correct any errors found on the credit report

In the case of finding errors on one’s credit report, one will have to take pertinent action.  The first step in correcting one’s credit report is to contact the credit reporting agencies.  Upon contacting them, one should inform them that something is wrong and that you are contesting the information listed.  The credit company will then investigate and if they cannot find proof of the debt listed, by law, they have to take that information off your credit report.  This of course costs nothing for consumers to do with the exception of some legwork.

Negative credit histories linger like fungus

Information listed on a credit report typically lasts for several years with few exceptions.  Ensure that if you have things such as repossessions or bankruptcies on your report that they are taken off after the allotted period.  If you do not ask the credit reporting agencies to take it off, they will not take them off. When making these requests, ensure that you send the requests through certified mail while keeping the receiving ticket.  This is proof that the request was signed for and therefore, will have to be adhered to by the credit-reporting agency.

How important is a credit report?

Credit reports are very important especially if you plan to perform property investments.  Credit reports are what financial lending companies view in determining if they will give you a loan or not give you a loan.  This is why you must ensure that your bills are not only paid but also paid for in a timely fashion.  Late payments along with non-payments are reported to credit reporting agencies.


If you have negative things on your credit report, you should ensure that you investigate these negative things on your report while ensuring that you contest the things which you disagree with.  The credit report agency has approximately thirty days to investigate the allegation and if they do not provide a report within that allotted period, the negative information has to be removed from your credit report.