If you’ve never paid much attention to your credit report or your FICO Credit Score, purchasing a home will bring those things to your attention like never before! If you’re not quite sure what makes up your credit report or what to look for, keep reading below.
First off, what is a credit report? A credit report pulls together information including your credit accounts, credit inquiries, personal identifying information, and public records. This information is compiled and shared with the three credit bureaus - Experian, Equifax and TransUnion. It is also used to calculate your FICO Credit Score. It’s also important to note that you can download a free copy of your credit report from each of the three credit bureaus every 12 months. You can head to www.annualcreditreport.com to get your copies.
So, now that you know what a credit report is and what it’s used for, let’s dive into what makes up your credit report.
First up, your credit accounts. Each credit account you have with a lender whether it be a mortgage, other loan, or credit account will be reported. Information on your payment history, length of time the account has been open, and credit limit or loan amount will be shown. When viewing this section on your report, make sure that everything is accurate and matches your own records.
Next on your report are your credit inquires. This section will show anyone who has gotten a copy of your credit report in the past two years. You’ll also see that there are two types of inquiries – hard and soft pulls. Hard credit pulls are requests made by you. Soft credit pulls are those requested by lenders on your behalf. For example, getting a pre-qualification letter from your InterLinc Loan Originator would be a result of them doing a soft credit pull. When looking over this information in your credit report, make sure that no unknown businesses are shown to have performed a credit pull on your behalf.
The next section to be looking for on your report is personal identifying information. This should consist of your name, address, employment history, social security number, and more. Make sure that this information is accurate when reviewing your credit report.
Lastly, public records are shown on your credit report. Public records include any outstanding debts to be paid or bankruptcies. Bankruptcies will stay on your report for a set number of years, so if you have one present on your report, make sure that it is without error.
Make sure to contact your local InterLinc Loan Originator with further questions about your homeownership journey!