Checking Your Credit
Your credit report from one bureau will not necessarily be the same as your credit report from another. Although many national lending institutions report consumer credit information to all three bureaus, smaller banks and other credit grantors may report to only one, or even none. Thus, each bureau may have different information in your report.
Your credit record is an extremely important part of the mortgage process because it determines the type and amount of loan you can obtain. Before you approach a lender, it would be wise to obtain copies of your credit reports from all three bureaus to check them for accuracy and know where you might stand in a loan approval.
Information in a Credit Report.
A consumer credit report contains four types of information: identifying information, credit information, public record information, and inquiries. It does NOT contain information about your race, religious preference, medical history, personal lifestyle, personal background, political preference, or criminal record.
Your identifying information includes basics such as your name, current and previous addresses, Social Security number, year of birth, current and previous employers, and assumed names.
Your credit information includes credit accounts or loans with banks, retailers, credit card issuers, and other lenders. Public record information includes any information that is contained in state and county court records, such as bankruptcies, tax liens, and monetary judgments.
Most credit and public information remains on your credit report for seven years. Bankruptcies can remain on your credit report for up to ten years. If there is inaccurate information in your credit report, you have the right to dispute it and have it removed.
Inquiries are your applications to other credit grantors applying for new credit. Such inquiries and applications could result in additional debt for you. Potential lenders often view multiple recent inquiries as a sign that you are overextending yourself. Most inquiries stay on your credit report for up to two years.