Facebook Pixel

What You Need to Know About Your Credit Report

By Mike in Urban Lifestyle with 0 Comments

There’s a lot that lenders can learn about you by viewing your credit report. In fact, most consumers are surprised to discover that they can learn a lot about themselves once they know how to correctly interpret the information on this report. Knowing what each recorded item on this report actually means is the first and most important step in building an attractive financial profile and increasing your purchasing power. If you’re thinking of buying a condo or Downtown San Diego loft for sale, here’s what you should know about your credit report.

What Your Credit Report Says About You

Your credit score is a single, three-digit number that states your overall creditworthiness. Your credit report, however, gives lenders greater insight into your borrowing and debt management habits. This report outlines five primary aspects of your spending, including:

  • Your bill payment history
  • The amount of debt you owe in relation to your total credit line
  • New account inquiries and credit
  • The diversity of your credit accounts
  • The length of your credit history

Beyond merely assessing your current credit score, prospective lenders will review each of these five factors. They’ll want to see how good you are at managing different types of debt, how often you pursue new credit and how long you’ve been using credit successfully among other things. These are all aspects of your financial profile that you can see for yourself when reviewing your credit report.

Understanding Your Credit Score

Your credit score is calculated by the three credit reporting bureaus: Experian, Equifax, and TransUnion. Each of these agencies has their own, unique way of calculating your credit score and thus, you may see minute differences in this number from one report to the next. In fact, there may be accounts and credit events that are recorded on one report, but not another. This is why it is vital for prospective buyers to always request copies of all three reports. Your creditworthiness according to one of these documents could be significantly different from your creditworthiness as determined by another.

What You’ll See When Looking at Your Credit Report

Your credit report will include a number of personally identifying details such as your full name, social security number and a list of you previous addresses. It is vital to check each of these details to ensure that they are recorded accurately. It is not uncommon for reporting errors to occur related to the supply of misinformation or as the result of similar names and social security numbers. Identifying and resolving these errors could have a significant impact on your credit rating.

Your credit report will also provide a list of all your current credit accounts and the status of these. Any information pertaining to you and monies that you owe that has been filed in public records will be present as well, including lawsuits, bankruptcies, foreclosures, liens, judgments, wage attachments, and past evictions. Finally, you will see a list of all credit inquiries that have been recently submitted. All of these factors are used by reporting agencies in the calculation of your credit score.

If you’re a first-time buyer, there may be more aspects of this process you’re unsure of, but working with an experienced agent can help make purchasing your first property for sale in Downtown San Diego a smooth process. Give us a call today at (619) 649-0368 and take the first step toward finding the home of your dreams! ')}