Even files with short credit histories may represent acceptable risk, depending on other factors, such as very low outstanding balances. People with less than two years history will likely not receive a credit score. It is possile that a credit report can contain inaccurate, obsolete, incomplete or misleading information. Writing a letter to the reporting agency to correct and improve the credit report when there is inaccurate information in a borrower's credit report is simple, legal, and a right provided by the Fair Credit Reporting Act. It may take 60-90 days to correct wrong information and borrowers need to be made aware of the time involved.
Credit scores are a snapshot of the risk an applicant presents at the time the score is generated.
If the consumer has improved payment habits, the score will rise. Copyright 2000 - 2001 GregoryNetwork. All Rights Reserved.