your good credit

Your credit record includes how well you have handled credit in your past and how you use it right now. Your credit record is kept electronically by each of three private companies. These companies are Equifax, Experian and Trans Union.

A credit report is a listing of the information in your credit record at one of these companies. It shows your debts and payment history with people and companies who have loaned you money, such as banks, credit card companies and department stores. It shows whether you pay bills on time and whether you pay the proper amounts due. Your credit report also shows any history of tax liens, bankruptcies, etc., even if any of these have happened several years ago.

It is important for you to understand how significant your credit record is to getting a mortgage. Before you even meet with a mortgage lender, you should get copies of your credit reports and review them.

One of the first things a mortgage lender will do when you ask for a mortgage loan is to order a copy of your credit report. As part of the credit report, lenders often get a credit score. A credit score is a computer-generated number that tells them how likely you are to repay your debts.

A credit score is calculated by analyzing all the pieces of information in your credit record and summarizing them in a number. Your credit score is important! It will be used – along with your credit report and other information from your mortgage application – to determine whether you will get a mortgage to buy or refinance your home. Your credit score also may be used to determine the interest rate you get on your mortgage.

Pay attention to your credit and keep it on the right track. A good credit record will give you a good credit score. And that’s good news when you go to get a mortgage loan.