Your Credit Report – Things You Should Know

THIS REPORT COVERS THE FOLLOWING AREAS:

What lenders look for on a credit report

How you can improve your credit score

How to know if you have inaccurate information on your credit report

How to obtain a Credit Report at no cost to you

(1) Don't Hide Anything From The Lender

You are the mortgage lender's client, and they are on your side. Because of this, you need to be completely honest and openly discuss past financial difficulties. This will make it easier for the lender to gauge your situation and provide you with best loan for your needs. If you hold back information and the lender finds out later, it could greatly affect the speed and difficulty of obtaining your loan. Remember, honesty is the best policy!

(2) Bad Credit Is OK

Bad credit is OK in many cases. The lender is not worried as much about the past as they are of your ability to repay the mortgage loan in the future. Basically, if you've had credit problems in the past, the mortgage company will look at those problems and ask the following questions:

a.) How far in the past are your credit problems? (i.e.- if you had multiple delinquencies on your credit card this year, you might not be able to obtain a loan)

b.) If your credit problem is in the past, is it likely to recur again?

c.) Is whatever it is that caused your credit problem gone, or is it still present today?

d.) How good is the probability that you will pay your bills faithfully every month from now on?

So, if you've had bad credit, don't let it keep you from applying for a loan. Even in the worst-case scenario, a good lender will never say no. That's because, it's not a question of IF you qualify for a home loan; it's a matter of WHEN you can qualify. This is why you should apply no matter what your credit situation.

(3) Improve Your Score By Paying On Time

There is no substitution for paying your bills on time. Even if you have made payments late in the past, make every effort to pay on time every month, especially in the 12-month period leading up to your loan application. This can dramatically affect your credit score.

(4) How Accurate Is YOUR Credit Report?

Did you know that more than half of American adults have inaccurate or outdated information on their credit reports? These errors can cost you thousands of dollars and could even keep you from getting approved.

How much incorrect information appears on your report? It is imperative that you get a copy of your credit report as soon as possible so you can find out. At the bottom of this report, we will show you how you can obtain a Copy of Your Credit Report, at no cost to you.

(5) Don't Touch Those Accounts

Old Accounts: If you have old, unused accounts on your credit report, don't close them before applying for your mortgage loan. One of the factors that affect your credit score is the ratio between your credit limits and how much you owe. Closing accounts will make this ration go up, which can severely impact your credit score.

New Accounts: Don't open any new accounts in the months preceding your mortgage loan application. New accounts can affect your credit score in a negative way for a number of reasons. The main reason is that every time you open an account, they are required to pull a copy of your credit report. If you pull a credit report too many times in a short period, this will make your credit score decline. Just say no to new accounts!

(6) Know Your Credit Score

When someone speaks about your credit score, they are talking about your three-digit FICO score. This score ranges from 400-850. The higher the number - the better. It is important for you to regularly check your credit score.

Where To Get Your Free Credit Report:

THE FEDERAL TRADE COMMISSION - YOUR ACCESS TO FREE CREDIT REPORTS –
(IMPORTANT - Please Read This First)
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

EVERYONE Can Receive One Free Credit Report ANNUALLY At:
https://www.annualcreditreport.com/cra/index.jsp

Other Credit Information Can Be Found At:

EXPERIAN

http://www.freecreditreport.com/pm/default.aspx?sc=667334&bcd=Goosigntest01&WT.srch=1

CREDIT REPORT.COM

http://www.creditreport.com/indexfg.asp?src=fgoogle&cid=12&tid=686204&kwd=free+credit+report+e&gclid=CP3m_LDRnokCFTw0GgodDDjjOQ

FREE CREDIT REPORT.COM –

https://www.freecreditreportsinstantly.com/ppc/creditreport/g-keyword428.aspx

ANNUAL CREDIT REPORT.COM –

https://www.annualcreditreport.com/cra/index.jsp

CREDIT SMART –

http://atfreecredit.com/v12/

CREDIT REPORTING.COM - http://www.creditreporting.com/goo2.html?aid=00028&ovmkt=A9VI083RTLIBOCVSMB59HGF0A8&gclid=CJjUgIHTnokCFTg8GgodpzI3NA

MYFICO.COM - http://www.myfico.com/lp/FreeCreditScoreAndReport.aspx?semengine=google&semcampaign=landing_page_test&semadgroup=Score_Watch_free_credit_report&semkeyword=free_credit_report&semcreative=na&sempage=lp_freecreditscoreandreport&semmatch=broad&semmarket=corescore_search&gclid=CLLci5TTnokCFRZ2NAodAjI7Wg