ABSOLUTLEY FREE CREDIT REPORT
How do I order my free report?
Once a year you are entitled to receive a free Credit Report from the 3 National Credit Bureaus. Equifax, Experian, and Transunion.
Simply call the following phone number, or click on the link provided. The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print it from ftc.gov/bcp/conline/edcams/credit. Do not contact the three nationwide consumer reporting companies individually.
They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.
Credit Scores, and You:
Credit scores generally range from the mid 300s to the mid 800s. The following table will give you a general idea of what your score tells lenders, but remember there are no set rules. Different products and lenders use different guidelines for what is an acceptable score. Also, there will usually be differences in the scores calculated by each of the three credit bureaus. Lenders use the middle of your three scores. Referred to as the Middle Score. If you wish to view your middle score, you can pay for it, you will have that option when you apply for your free reports. Generally under $10. If you dispute an error on your reports, and the creditor can not verify the disputed items, they must be removed from your credit report.
Above 730 Excellent credit
700 - 729 Good credit
670 - 699 Lenders have stricter guidelines, and more requirements for applicants to meet.
585 - 669 Considered higher risk; may not be eligible for some products.
Below 585 Credit options may be limited or not available.
What determines my score?
Since scores are calculated using proprietary systems, the exact rules are not public knowledge. Credit scores measure the likelihood of default, so credit scores are generated using factors that have been found to predict credit risk. These factors are not weighted evenly and several minor instances may indicate a higher risk than one major, but isolated, credit problem.
There are five main categories of credit information which impact your credit score (listed in decreasing order of importance):
Late payments, delinquencies, bankruptcies: Past inability to pay on time will hurt your chances of getting credit in the future. More recent problems will be counted more heavily than those in the past.
Outstanding debt: The more debt one has, the greater the risk that he or she will not be able to keep up with the payments.
Length of credit history: With a short track record it is harder for a lender to assess creditworthiness
New applications for credit (inquiries): Frequent credit checks by lenders may indicate that a borrower is looking to increase his or her amount of debt.
Types of credit in use: Some types of credit, including credit cards, provide you with a credit line greater than the amount you have already borrowed. The more credit available, the greater the risk to the lender since a borrower can easily increase their outstanding debt.
It is important, that during the process of applying for a loan for a home, that the borrowers not over shop, going from lender to lender trying to get a better APR, point spread, etc.
Opening new credit accounts, making major purchases, and some credit activities, send a signal to lenders that the applicants have too much credit extended to them, and the application is denied.
The best advise would be, to find a loan officer that you have confidence in, and that you trust. He or she will research the loan programs that you qualify for, and give you the best solutions, to meet your need. Often several options will be presented, for the clients to consider.
Lenders set forth certain requirements for applicants to meet. These requirements are based upon Credit worthiness, credit history, income, assets, down payment, and the value of the property, as well as other factors. When these requirements are met, then the lender extends an offer, with all the details spelled out, and an interest rate that can be Locked, for a certain number of days. It is within this period of time that the loan must be closed, and funded, and all the documents of ownership etc.
be recorded for the transaction to take place.