| CREDIT SCORES |
| How to read and understand your credit report |
| The lender told you to get a copy of your credit report as part of the pre-qualifying process for a mortgage. The purpose, they said, was to see how your credit looked and to clear up any errors that might be in the report. But now that you''ve got it, there are an awful lot of numbers, abbreviations and terms you''ve never seen before. Trade lines, charge-offs, account review inquiries -- how do you read a credit report? First off, there are three major credit-reporting agencies in the United States: Experian, TransUnion and Equifax. When you go see a mortgage person ask for a copy of your credit report and review it for any errors. Some mortgage lenders may charge you for the credit report. Costs vary from state to state, but in most states, it costs $9-25 to get your report. TransUnion, Equifax and Experian all allow you to review your report online. You should get a report that shows all three credit bureaus. Each bureau reports differently. Their reports will have different information because it''s a voluntary system, and creditors subscribe to whichever agency they want -- if any at all. Some bureaus report better for different areas. You will have different scores from all 3 bureaus because they use different scoring formulas. The Fair Isaac Corporation is the creator of the FICO score, the widely used credit-scoring model that is used to determine a person''s credit risk. A credit report is basically divided into four sections: identifying information, credit history, public records, and inquiries. Identifying information Section Identifying information is just that -- information to identify you. Look at it closely to make sure it''s accurate. It''s not unusual, Sweet says, for there to be two or three spellings of your name or more than one Social Security number. That''s usually because someone reported the information that way. The variations will stay on your credit report; "If it''s reported wrong, we leave it because it might mess up the link. Don''t be concerned about variations." Remember that is people that are inputting the information and they make mistakes. Other information might include your current and previous addresses, your date of birth, telephone numbers, driver''s license numbers, your employer and your spouse''s name. Now if there is a new address that you are living at that may be a red flag that somebody else may be using your identity. Credit History Section. Sometimes, the individual accounts are called trade lines. Each account will include the name of the creditor and the account number, which may be shorten or scrambled for security purposes. You may have more than one account from a creditor. Many creditors have more than one kind of account, or if you move, they transfer your account to a new location and assign a new number. The entry will also include: when you opened the account; the kind of credit (installment, such as a mortgage or car loan, or revolving, such as a department store credit card); whether the account is in your name alone or with another person; total amount of the loan, high credit limit or highest balance on the card; how much you still owe; fixed monthly payments or minimum monthly amount; status of the account (open, inactive, closed, paid, etc.); how well you''ve paid the account. "Charged off means the creditor has given up, thrown in the towel," "The creditor has made efforts to collect and written it off." Your credit history will show 30 day lates, 60 day lates, and 90 days lates. Public Record Section Is the part you want to be absolutely blank. The public records section is never a good story.. "If you have a public record on there, you''ve had a problem." It may be a tax lien, it may be a judgement from a lawsuit. It may be a bankruptcy. These items affect your credit and credit score hard. Inquiries Section. That''s a list of everyone who asked to see your credit report. Any time anyone gets into the report, it''ll post an inquiry. If you call the credit bureau and ask for a copy, it will be on there. It''s a very detailed entry record. It''s great for the consumer. Inquiries are divided into two sections. "Hard" inquiries are ones you initiate by filling out a credit application. "Soft" inquiries are from current creditors who are monitoring your account. The soft inquiries are only shown on reports given to consumers. You may have heard that a large number of inquiries can have a negative impact on your credit score. You should not pull your credit report more than 3 times because it may drop your credit score. For instance, the FICO scores have at least a 30 day buffer period where auto and mortgage inquiries are initially bypassed and not counted. It also counts two or more "hard" inquiries in the same 14-day period as just one inquiry. If you find a mistake on your credit report -- an account that isn''t yours or a disputed amount -- you''ll need to call or email the credit bureaus. The process takes time because the creditors have 30 days to respond to a charge of a discrepancy. As long as a charge is in dispute, that dispute will show up on your report. Long-time lenders say it''s common for reports to have errors. Some estimate that as many as 80 percent of all credit reports have some kind of misinformation. Are you looking for Vacant Lake properties Oakland County MI, find them here! Check out My Listings Learn more about School Lake Here are Grass Lake Sales to see how the market has been. Woodhull Lake and all you need to know about buying a lake home here!
$875,000 5067 Oakwood Court Commerce Township, MI Beds: 3 • Baths: 2 full/1 partial $629,900 6060 Rosewood Parkway White Lake Township, MI Beds: 5 • Baths: 3 full/1 partial $875,000 43484 Scenic Lane Novi, MI Beds: 4 • Baths: 3 full/1 partial $69,900 0000 Reed Lake Road Commerce Township, MI Beds: 0 • Baths: 0 $600,000 921 Kyle Court White Lake Township, MI Beds: 4 • Baths: 3 full/2 partial |
Privacy Policy / DMCA Notice / ADA Accessibility
