Credit bureau score - A number representing the possibility a borrower may default; it is based upon credit history and is used to determine ability to qualify for a mortgage loan.
There are three major credit bureaus that lenders use to "pull" your credit. These companies are:• Experian (Formerly TRW)• TransUnion• Equifax
Each of these companies maintains a separate credit report on you based off information gathered from your creditors. Depending on who your lenders are and which Credit Bureau's they report to, if not all three, will determine the differences in your credit report from each company. At a bare minimum you need to order a report from one of these companies directly or through an intermediary. The best thing you could do is order a Tri-Merge report. This report is one that merges the information from all three Bureau's into one report so you can see the information that all three credit providers are reporting about you. Mortgage Professional will have access to this report for a reduced fee.
The scoring model will differ depending on whether you're applying for a mortgage, credit card, auto loan, or insurance.
Credit scores you get from companies that advertise online many times are in fact not the actual score your Loan Officer will see. These scores are not based on the same scoring models that are used when have your credit pulled by your Loan Officer for the purpose of a mortgage loan.
FICO scores generally range between 300 and 900.
Scores are based on a person's whole credit picture. No one factor determines a score. A credit score is a composite of both positive and negative information such as missed payments or bankruptcies (if any) as well as accounts paid satisfactorily. That said, several areas of the credit bureau report carry the most weight in a credit score.
Most lenders obtain scores from three sources and use the middle score to base your qualification.
I can understand how your credit score can be confusing. I want to thank you for reading the information above. If you would like to continue this conversation than please contact me so you and I can discuss your financial situation. Please read more valuable information and when you feel comfortable I would like you to contact me.
Biggest single factor to credit score is your mortgage. Having one mortgage late is a red flag.
By keeping all of your revolving credit balances below 50%, you will get a higher score. Below 30% is even better
Yes, mortgage accounts are looked at big time. FICO scores are most effected by lates on mortgages than lates on credit cards. They figure, if you cannot be financially responsible enough to pay for your house (the roof over your head) then you are not financially responsible at all. I've seen 100 points be taken away from a single 30 day late on a mortgage.
