From my understanding of the Fair and Accurate Transactions Act of 2003, a lender uses a “risk-based pricing” system where they tap into an applicants credit files. If your credit file is inaccurate, it might lead you to get charged with a higher loan rate. This signifies to the lender you might pay late. This is why I cannot stress enough to stay on top of your credit file. Review it annually and correct errors. You may get your credit report for free one time a year from all the credit reporting bureaus individually or www.annualcreditreport.com. You will be glad you did. In the long run, this will save you money.
