A Word About Credit Histories

Your credit history is a very important factor in determining how much credit you can be approved for. After all, lenders want to have a high level of confidence that the borrower will be able to pay the loan back in full and a history of responsible credit use can help you get a much more favorable interest rate along with other terms.

Your credit score has a direct effect on the type of terms you can expect when getting a loan, particularly the interest rate. Typically, the better credit score you have, the lower the interest rate you can get. This will impact your monthly payments so pay attention to your Credit Score.

There are three major reporting companies: Equifax, Experian and Trans Union. You have the right to get one full credit report a year for free from one of these companies. It is a good idea to check all three, as these companies do not get their credit histories from the same sources. Be sure to go through the entire report. If you see inaccuracies you can request that they be removed or add your own comments to clarify things in the report. It’s good to do this before your apply for a home loan. Lenders are usually understanding about legitimate problems so be upfront with them.

Credit Reporting Company Phone Numbers
Experian 1-800-682-7954
Equifax 1-800-685-1111
Trans Union 1-800-916-8800

Mortgage Calculator l The Lowdown on Down Payments l A word about Credit Histories l Other Considerations l Mortgage Related Closing Costs

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