Suppose you are buying a car or you are trying to get a mortgage on a piece of property. Both are situations in which a consumer's credit score is crucial to the transaction. Your credit record will determine two things: first, whether you are approved for the purchase or lease in the first place and, second, what the terms of the loan / lease will be in the event you do get approved.
If a consumer walks into a car dealership, selects a vehicle he wants and then tries to borrow money for the transaction, the car dealership will check his credit report. Consider what happens with two consumers: Consumer A has a credit score of 800 and 10,000 dollars to put down on the vehicle. Consumer B has a 600 credit score and only 1000 dollars to put down on the vehicle. Let's suppose further that both consumers actually prefer to lease the vehicle as opposed to buy the vehicle. In the case of Consumer A, he will be allowed to lease, but Consumer B will not. This is because a car company will only lease its vehicle to people who pose a very low credit risk. So right away, Consumer B walks onto the car lot with limited options because his credit score is low.
But suppose Consumer A and B wish to purchase the vehicle. Consumer A will be told that he qualifies for a 1.9% interest rate over 60 months and doesn't need to put any money down. His payment will be 400 dollars. Consumer B wishes to purchase the same vehicle, but will be told that he has to put 3000 dollars down and will have to pay 460 dollars over 60 months.
Why the difference? Creditworthiness. Consumer B's interest rate will not be competitive. Consequently, he pays a price for his poor credit score.
It is easy to imagine a similar outcome in the mortgage context.
Often, Traywick Law Offices fields telephone calls from customers right after they tried to make a substantial purchase, frequently a car or a piece of property, and have been told by the lender either that they do not qualify, or are offered terms that are unacceptable, all because a major negative item or items appear in the consumer's credit report.
Sometimes, the consumer is denied credit because of a debt that he does not owe but that appears on his credit report. The wrongfully reported credit information can appear there for a number of reasons: 1) identity theft; 2) divorce; 3) mistake; 4) misunderstanding, and a host of other reasons.
If your credit report has been damaged because someone has placed a negative item on your credit score that does not belong there, you do have a very powerful legal remedy - the Fair Credit Reporting Act.
Credit scores and credit reports are important. When consumers are denied credit, or are forced to pay higher interest rates owing to information being reported on a credit bureau report ,such as experian, equifax, or transunion reports, that is erroneous or otherwise does not belong there, the consumer has been damaged.
Fortunately, Traywick Law Offices deals with this kind of situation, and you can be compensated, sometimes significantly, for the damage done to your credit score as a result of the disputed credit information or 'trade-line'.
Although the Fair Credit Reporting Act is complicated, Traywick Law Offices is familiar with the Act and has successfully brought civil actions to enforce consumers' rights. Recoveries for damages in cases like these can be considerable and you should telephone Traywick Law Offices to speak with the lawyer right away to see about what can be done.
If you have discovered a negative credit item on your credit report or seen a credit report that has collection accounts, delinquent accounts, or public records reported that are incorrect, you have legal rights available and the recovery may be substantial.
But do not try to handle the case on your own without a knowledgeable consumer credit dispute attorney assisting you. Call today to discuss your case.