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FYI
Understanding
Your Credit Report
When applying for a mortgage loan, there are 4 major factors that are evaluated:
- Income
- Employment
- Indebtedness
- Credit History
At Corridor Mortgage Group, we want our customers to be informed consumers. Here are a few items that you should know about your credit report, history and credit scoring.
Credit Bureaus
There are 3 companies that collect credit information. You can contact them by phone or go on line to obtain a copy of your credit report. Since not all creditors report to all three, it is recommended that you obtain a report from each of them. The nominal fee they charge is well worth the expense.
Equifax
PO Box 105873
Atlanta, GA 30348
(800) 685-1111
Experian
PO Box 2002
Allen, TX 75013
Consumer Credit Questions
(888) 397-3742
TransUnion
PO Box 390
Springfield, PA 19064
(800) 916-8800
(800) 851-2674
What Is A Credit Report?
A credit report or credit profile is a picture of how you paid back the companies you have borrowed money from, or how you have met other financial obligations. There are usually five categories of information on a credit profile:
- Identifying Information
(Name, Address, Social Security Number, Date of Birth) - Employment Information
(Employer, length of employment, etc.) - Credit Information
(Creditor, Account Number, Type of Account, Opening Balance, Present Balance, minimum payment obligation, payment history, late payments) - Credit Score
(See article on FICO Scoring) - Public Record Information
(judgments, collections, charge-offs, liens, bankruptcies, etc.) - Inquiries
(A request for a credit report when the consumer applies for financing, such as applying for a credit or store card, purchasing an automobile, etc.)
What About Inaccurate Information On My Credit Report?
When you receive your report, we encourage you to study it thoroughly and verify the accuracy of all information contained.
It's not hard to imagine that in the processing of information for millions of people, that mistakes are made. But, you have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file.
When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a "reasonable period of time," unless it believes the dispute is "frivolous" or "irrelevant." If the credit reporting agency cannot verify a disputed item, it must delete it.
If your report contains erroneous information, the credit reporting agency must correct it. For example, if your file showed an account that belongs to another person, the credit reporting agency would have to delete it. Also, at your request, the credit reporting agency must send a notice of correction to any report recipient who has checked your file in the past six months.
What About Accurate, But Derogatory, Information On My Credit Report?
For those items in your credit profile which you feel deserve further explanation (such as an account that was paid late due to the loss of job, military call-up, or unexpected medical bills), you may send a brief statement to the appropriate credit reporting agency. The information will be placed on your credit profile and will be disclosed each time your credit profile is accessed.
But what about more serious credit problems such as judgments, collections or bankruptcy? We understand that discussing such information is much like undressing financially before your mortgage doctor. However, if you have had credit problems, be prepared to discuss them honestly with one of our loan officers and come to your application meeting with a written explanation.
As experienced mortgage professionals we know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory.
Our loan officers, with your permission, will pull your credit history and discuss it with you in full detail. They are experienced in dealing with bad credit and no credit. So, even if you think your history is bad, let us be the judge.
Protecting Your Privacy - Credit Report Access
The Fair Credit Reporting Act (FCRA) is the federal law regulating credit reporting companies like Equifax, Experian, and Trans Union. It specifies who can see your credit profile.
Businesses must have a "legitimate business need," and a "permissible purpose," as stated in the federal law to obtain your credit file. Otherwise, only you, and only those to whom you give written permission, can access your credit files.
Some examples of those who can access your credit files are:
- Employers
- Insurance Companies
- Credit Grantors
- Collection Agencies
Overcoming Credit Obstacles
At Corridor Mortgage Group our loan officers are experienced in overcoming credit obstacles. Even if you have been turned down by other lending institutions, there may still be hope for you.
Give us a call and let one of our loan officers examine your credit history to see if indeed you may still be able to qualify for a mortgage loan.
What Next?
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