Tag Archives: credit report

How Do I Get a Copy of My Credit Report?

Sandy Gadow

If you have been denied credit in the past 30 days, you have the right to request a free copy of your credit report. Beginning December 1, 2004 in the Western states, and nationwide in 2005, the three main credit reporting bureaus, Equifax, Experian and TransUnion will be required to give you, upon request, a free copy of your credit report once every 12 months. Once set up in your area, you will be able to obtain your free copy by calling (877) 322-8228, or on the internet at www.annualcreditport.com. If you prefer, you can write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281. You are assured of your free credit report by the Federal Trade Commission’s ruling last year under the Fair Credit Reporting Act.

To contact the credit bureaus individually:

  1. Experian
    P.O. Box 2106
    Dallas, TX 75002-9506
    (888) 397-3742
    www.experian.com
  2. Equifax Information Services, LLC
    P.O. Box 740241
    Atlanta, Georgia 30374
    (800) 685-1111
    www.equifax.com
  3. TransUnion, LLC
    Consumer Disclosure Center
    P.O. Box 2000
    Chester, PA 19022
    (800) 916-8800
    www.transunion.com

Related Question

What should I look for in my credit report?

Once you have obtained a copy of your credit report from the three main credit reporting bureaus, look for potential problem areas which could impact your over all credit score. Look carefully for inaccurate information, such as late payments which may be reported which are not correct. It is not uncommon for a creditor to show a delinquent credit card payment, for example, when you are know you have paid your bill on time. You should also check the public records section of your report which will show any tax liens, bankruptcies or default judgments which have been levied against you. Check the credit card accounts listed in the report carefully to be sure there are not any accounts which don’t belong to you. If you find errors, you will want to report them as soon as possible. You can learn more about disputing incorrect information at www.ftc.gov/credit.

Copyright © 2004 Sandy Gadow This column may not be resold, reprinted, resyndicated, or redistributed without the written permission of Escrow Publishing Company.

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Consider ordering your free credit reports one at a time. For example, order your report from Experian one month, from Equifax the next month, and TransUnion the following month.

Why Is My FICO Score So Important in Getting a Mortgage?

Sandy Gadow

Most lenders rely on a credit score, called a “FICO score” to determine a Borrower’s credit worthiness when applying for a mortgage. Your FICO score or number may determine what type of interest rate and loan program you are likely to be offered from any one lender. Each lender may have different guidelines and requirements to fit their individual loan programs. Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax, Transunion, and Experian. Since each credit bureau may collect your credit data differently, an average score of the three bureaus is deemed the most accurate. In general terms, a score of 720 or better will mean that your credit risk is very low and you may be offered a preferred low interest rate and several loan program options. A FICO score in the range of 660 to 719 is still acceptable for several different loan programs. A score of 620 to 659 indicates a Borrower shows a higher degree of risk to default on a loan, so different guidelines may apply than for a Borrower with a higher FICO score. Under 619, a Borrower is generally considered a high risk for default. A high risk Borrower may still qualify for a loan, but the interest rate or terms may not be as favorable as of those offered to a low-risk Borrower.

How do I establish credit to qualify for a mortgage?

If you are a young Borrower, or a new Borrower, with little or no credit history you can establish credit by working for two years, paying off something small, like a student loan each month, and get one debit card and pay it off each month.

Most lenders rely on a credit score, called a “FICO score” to determine a Borrower’s credit worthiness when applying for a mortgage. Your FICO score or number may determine what type of interest rate and loan program you are likely to be offered from any one lender. Each lender may have different guidelines and requirements to fit their individual loan programs. Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax, Transunion, and Experian. Since each credit bureau may collect your credit data differently, an average score of the three bureaus is deemed the most accurate. In general terms, a score of 720 or better will mean that your credit risk is very low and you may be offered a preferred low interest rate and several loan program options. A FICO score in the range of 660 to 719 is still acceptable for several different loan programs. A score of 620 to 659 indicates a Borrower shows a higher degree of risk to default on a loan, so different guidelines may apply than for a Borrower with a higher FICO score. Under 619, a Borrower is generally considered a high risk for default. A high risk Borrower may still qualify for a loan, but the interest rate or terms may not be as favorable as of those offered to a low-risk Borrower. To order a copy of your FICO score, contact Fair, Isaac Corporation at: www.myfico.com

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To improve your FICO score, avoid opening new charge accounts, buying a car or furniture on time or looking on the internet for low rate credit deals between the time when you receive a loan commitment and the time you close.

Copyright © 2003-4 Sandy Gadow. This column may not be resold, reprinted, resyndicated or redistributed without the written permission from Escrow Publishing Company.

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