If you’ve ever had to wait for days while a mortgage broker submits your application to lenders and finally gives you the dreaded call to inform you that your score is not high enough to qualify, or that you’re going to need more down-payment money because you are a riskier borrower, then you know how important a credit rating can be.
How about when a car dealer runs your credit report and you wait for hours while they “work with the bank” only to find out that you only qualify for a loan with a high interest rate that doubles your budgeted payment. Not only is this embarrassing, it can be financially devastating.
Stories like these are not uncommon across America. As a nation, we have recently endured one of the most severe recessions since the 1930s. Many of our citizens fell victim to an economy that was booming, and virtually overnight went completely bust. Homes were foreclosed, credit cards cancelled, cars and trucks repossessed, and bankruptcies were routinely filed.
All of this misfortune was beyond the control of ordinary folks, but they fell victim to it nonetheless. On the other side of the spectrum there were the reporting agencies that were responsible for the record keeping in the midst of the chaos. Needless to say, mistakes were made. Numbers were transposed, addresses were incorrectly reported, late payments were exaggerated, etc.