Understanding
Your Credit Report Scores
Afraid to check your credit report scores? Don't be! Understanding your scores and report is essential before beginning the home buying process. Usually your scores are not as "bad" as you think! A vast majority of adults have had at least one "unfavorable" credit ding on their report at some point in their lives. Whether it happened in college, during a lay-off, an unexpected hospital visit, or just impulsive buying...most people can relate. We will help you understand the importance of managing your credit!
WHAT IS IN YOUR CREDIT REPORT SCORE?
Although each bureau (Equifax, Experian, and Transunion) formats and reports this information differently, all three contain basically the same categories of information. Your social security numbers, date of birth and employment information are used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to lenders.Identifying Information.
Your name, address, social security number, date of birth and employment information is used to identify you. These factors are not used in scoring. Updates to this information come from information you supply to lenders.Trade Lines.
These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your limit or loan amount, the account balance and your payment history. Inquiries.
When you apply for a loan, you authorize your lender to ask for a copy of your report. This is how inquiries appear on the report. The inquiries section contains a list of everyone who accessed your report within the last two years. The report you see lists both “voluntary” inquiries, spurred by your own requests for credit, and “involuntary” inquiries, such as when lenders order your report so as to make you a pre-approved card offer in the mail. Public Record and Collection Items.
These bureaus also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments (garnishments), liens and judgments. For more information on inquiries visit
What are Credit Inquiries?
HOW MISTAKES ARE MADE ON
YOUR CREDIT REPORT
When a credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because: |
