Understanding Your Credit LeaderOne Financial WHAT DOES YOUR CREDIT REPORT SAY ABOUT YOU? Shockingly, many people have never seen their Credit Report! Not knowing what your credit report says about your finances may cost you more when trying to obtain a mortgage. Even those who pay everything on time might have an unaddressed credit issue that is hurting your credit! It is very common for incorrect information to be reported on your Credit Report and it is important to identify any issues and correct them before you apply for a mortgage. Many of you have seen “Free Services” advertised on T.V., The Internet, and through the Radio. When you see an offer for a “Free Credit Report”, IT’S NOT FREE and generally gives you a little information to get you to sign up for their services! However, under federal law, you have the right to obtain a free and secure Credit Report at www.annualcreditreport.com. The top three credit reporting agencies, Equifax, Experian, and TransUnion are required by law to provide you with a free annual credit report, once a year. YOUR CREDIT REPORT COMES DOWN TO A FEW IMPORTANT QUESTIONS What is your credit score? Your credit score is a numerical representation of your trustworthiness in paying back debt. Each bureau will present your with a credit score based on the data they have. WHAT IS REPORTING? The items that are reporting on your credit report include: Credit Cards Department store cards Gas cards Bank cards Airline cards Installment Loans Mortgage loans Auto loans Student loans Utilities Rent (sometimes) Collections or judgements Bankruptcies WHAT DOES YOUR HISTORY LOOK LIKE? Credit history is a record of the “health” of each reporting credit line. Your credit score is created from the list below. Account Variety means having a diverse set of account types, installment, mortgage, revolving, etc… New Credit can show up from employment screening, utility providers, insurance related inquires, and other credit inquiries. Payment History 35% Debt 30% Time Existing 15% Account Variety 10% New Credit 10% DON’T WORRY! Credit issues will not haunt you forever when you actively try to improve your credit. Lenders know that “life circumstances” happen such as illness, divorce, loss of job or accidents. The key is to show the lender that prior to the life circumstance you showed responsible use of credit and that after the life circumstance you re-established your credit. As you add new information to your report the old information ages. Scores will change gradually, as you change the way you handle credit. Remember the older the trade line (credit), the less impact it has on your scores. CREDIT REPORT PROBLEMS? Fixing credit reporting issues , such as incorrect collections showing up, late payments showing up when paid on time, active accounts that are closed, can be fixed. The key is to identify any issues and work toward having them corrected. If you want to take action, the first step would be to call the bureaus at: Equifax- 1-800-685-1111 or go to www.equifax.com Experian- 1-888-397-3742 or go to www.experian.com TransUnion- 1-800-916-8800 or go to www.transunion.com Need An Answer? CONTACT US NOTICE TO TEXAS CONSUMERS: COMPLAINTS REGARDING THE SERVICING OF YOUR MORTGAGE SHOULD BE SENT TO: THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 N Lamar, Suite 201 Austin, TX 78705. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550 NMLSConsumerAccess.org NMLS#12007 HOME VALUE CENTER Servicing Center/Make A Payment VENDORS TPO Wholesale Application APPLY LINKS Mortgage Application Borrower Portal COMPANY INFORMATION Privacy Policy Terms Of Use Licensing Info Find A Loan Officer Job Openings PRIVACY Notice At Collection Do Not Sell My Personal Information © 2021 LeaderOne Financial Corporation