Understanding Credit Reports

Your Credit Report

• What is a Credit Report?
  A report detailing a borrower’s credit and payment history
  including: revolving and installment accounts; public records such as tax liens and
  judgments.
• What appears in a Credit Report?
  Your name, social security number, current and previous
  address, credit scores, creditors, inquires, creditors address and adverse summary.
• Can I review my Credit Report?
  You can as long as you know what you are looking at and it is a
  lenders credit report.
• What if a credit blemish is not valid?
  Covered in Credit Repair Section.
• What is the cost of a “Tri-merge” Credit Report?
  Typical cost for an individual report is $10.50
  and for a joint report it is $18.00.
• When getting a mortgage loan, how important is my Credit Report?
  It is not the only thing that
  is viewed, but it carries a lot of importance.
• What does my Credit Report tell the Lender?
  The borrowers willingness and ability to make
  payments on time.
• How many different Credit Reports are there?
  3 reports, they are a Consumer, Automotive and
  Lender Credit Reports.

My Credit Score

What is a Credit Score?

A credit score is a snapshot of a person’s credit risk at a
particular point in time. It is used by lenders to help determine if a borrower qualifies
for a loan. There are three main credit reporting companies that issue these credit
scores. Experian calls it the FICO score, TransUnion calls it Empirica, and Equifax
calls it the Beacon. Credit Scores range from 350-850 (See Diagram Below).

Grade Yourself
350-500 Credit Score is Poor (F)

501-580 Credit Score is Semi-Poor (D)

581-640 Credit Score is Fair (C)

641-700 Credit Score is Good (B)

700-Above Credit Score is Excellent (A)

• How Important is my Credit Score?

  It can mean the difference between getting what you want vs.
  not getting what you want.

• What if I have a “low” Credit Score?
  See Credit Repair Section.
• How low is “too low”?
  Anything under a 620 score.
• Other Things That Will Affect A Mortgage Approval:
  Lack of open or closed accounts,
  derogatory open or closed accounts, late payments in the last 12 months & non payment of student
  loans.
• What can I do to change my Credit Score?
  Create good payment history. Keep from having late
  payments, collections and charge-offs. Bankruptcy, Repossession and Foreclosures have the most
  impact on your credit scores.
• How quickly will my Credit Score change?
  Your credit score can change in as little as 10-15 days
  when you are trying to get your credit scores up. See Credit Repair Section.