Credit Bureaus, Who are They? What Affect do They Have on My Life?So if you're applying for a home loan or car loan, these agencies have a great affect on your life. How? Your lenders will subscribe to them and use them for "pulling" your credit report and checking out your credit history. Many times all three of them are used why applying for a home loan. They fit together like pieces to a puzzle.
Depending on what your credit history looks like, they can make your life pleasant or misreable. These agencies are subject to the
Fair Credit Reporting Act,
which says that derogatory items can stay on your report for seven years.
For example, if you had a phone bill go to collection this information will show on your credit report for seven years. If you had a bankruptcy, lien, charge-off, repossession or any type of derogatory credit item, this will also appear on your credit report for seven years. But, if you had a foreclosure (gave a house back to the lender for nonpayment) this can stay on your report for ten years. The good news is that you can "dispute" these derogatory items with these agencies online, on the phone, or by mail using a dispute letter. In many cases these incidences will eventually not appear on your record, either because they are false or the creditor in question loses interest in reporting your derogatory item. That's why it's a good idea to dispute. As a first time home buyer, you want these agencies to report your credit history with an "A+" if possible. That way you can have the best programs to choose from offering you the best interst rate.
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