Why Not Checking Your Credit Report Could Cost You Thousands

ScammedAre you someone who doesn’t pay much attention to you credit report? Is it one of those things you don’t about it until it’s too late?

Read more to see first-hand, just how damaging not checking your credit report could be.

A newlyweds dream…

Derek and Cynthia had only just recently returned from their honeymoon down in the Bahamas.

On the return trip, they excitedly made all kinds of plans for their new life together.

They both agreed that finding a new home to start their new marriage was first on the agenda.

Besides, they both wanted children soon, and their tiny little apartment downtown just wouldn’t cut it anymore. In fact, their apartment was already stuffed to the gills with his stuff, with her stuff, and now all the wedding gifts.

Happily, they both agreed on exactly what they wanted. They pictured a nice affordable 3 or 4 bedroom home close to the city where they both worked. They also wanted their home to be accessible to good schools and convenient to both the expressway and the commuter train that ran downtown.

After what seemed like a whirlwind tour of homes and neighborhoods, they found it. Their realtor took them to their dream home — a perfect little 3 bedroom bungalow on a quiet cul-de-sac.

The local schools were all within just a few miles, and the commuter train station was only a mile away. It had a lovely fenced in backyard with a storage shed in the back corner, under a towering oak tree. “OMG!” thought Cynthia when she first saw it. “This is it, my dream home.”

They followed the realtor to his office and made up an offer. Within an hour, the seller accepted their offer. “Yippee” shouted Derek and Cynthia as they high-fived each other in the realtor’s office.

Driving back to the apartment, they were so excited they could barely contain themselves. Cynthia was already figuring out decorating and paint schemes while Derek was wondering how much room there would be left in the garage if they parked one of their cars inside.

…turned into a nightmare.

The next day, Cynthia was on a lunch break at work when she saw an urgent text from the realtor. Call me ASAP was all the text said. “Uh-oh, now what” she muttered as she dialed the realtor’s office. When she finally got him on the line, he was short and to the point.

“Your APPLICATION IS DENIED. It seems there was a pretty big blow to your credit report last year. Why didn’t you tell me about that? I have no choice but to contact the seller and inform him that we should contact the other interested buyers.

“What?” Cynthia was in shock and sank dejectedly to the floor. “What do you mean?” she finally was able to ask. “There was a $43,297 judgment against you 11 months ago.

The lender we approached won’t accept a borrower with that kind of recent judgment, and your husband’s credit is just ok. He doesn’t have any significant items, but together you two just don’t qualify for this home. “I’m sorry” and he hung up.

“OMG! What’s happening to me? What went wrong, I thought I had perfect credit, I haven’t had any judgments?”

Take action, before it’s too late.

Well, you can fill in the rest of the story yourself. It may be true that Cynthia thought she had perfect credit. But, she made the very costly mistake of just assuming her credit report was okay.

Because she didn’t consider checking her credit report for herself, she lost out on her dream house, the dream home that was supposed to be the beginning of a long and happy marriage.

One can only hope that Cynthia finally checks her credit report and is able to correct this erroneous entry. But, there is another way, a better way.

As you probably know, you are entitled to one Free Credit Report per year. All you have to do is go to www.annualcreditreport.com, fill in your information, and it will be sent to you at no charge.

Checking your credit report is a crucial task that you should not neglect. Consider that the cost of missing an error you might not even know about could cost you the home you really want.

Also, remember you can get your credit report for FREE. Really, there is no excuse for not checking your credit report yourself.

Ok, now it’s your turn. Do you have a tale about credit reports to share? 

 

About the Author: 

Dom BrownDominique is the author of the blog YourFinancesSimplified and the creator of the HOW TO FIX YOUR CREDIT PROGRAM.

Feel free to contact him via Twitter @UrFinanceSimple or send him an email to admin@yourfinancessimplified.com.

  • http://twitter.com/boomerangbuck Andre Brown

    In the past I was bad about regularly checking my credit report. When I finally did years ago, I noticed an account that was on there as delinquent or past due. Funny thing, that account had been closed in full and on time 2 years prior. Needless to say that was hurting my credit a bit. I followed the necessary steps to get it corrected (which took 6+ months).

    If not for checking my report, I would have missed this error. So important to check our report. Great post and information!

    • http://carefulcents.com/ Carrie Smith

      That’s a really great example, Andre! It really is important to check your report regularly, thanks for sharing your story.