Your credit report is an important document in your search for a home loan and mortgage. Lenders use this document to inspect your credit history and determine your creditworthiness.
Here is what you need to know about your credit report, what it contains, and how it can help you purchase a home.
What Is Included In Your Credit Report?
Your credit report will include both private information such as you names, social security number, and employment data, and public information like wage garnishments, bankruptcies, and liens.
Credit Report Is Not Your Credit Score
The first thing to understand about your credit report is that it is not your credit score. Your credit report is your credit history from at least the past 7-10 years while your credit score is a number based in the information present in your credit report.
Your credit score does help lenders decide if you are credit worthy but the credit report supplements that score by allowing them to view your credit history. For example, if you had a good credit score and it suddenly dropped, your credit report will show lenders why. Perhaps you fell behind on debt payments or you were a victim of credit card fraud.
In the case of fraud, you can dispute it on your report.
You Can Dispute Errors On Your Credit Report
It is a good idea to review your credit report at least once a year to make sure that it is in good order. When you do you should check it for errors that could negatively affect your credit score, such as fraud.
You can dispute your error online or send a dispute letter via certified mail with a return receipt. Be sure to get a return receipt so you can save the response for your records.
Who Can See Your Credit Report?
When it comes to who can see your credit report, know that only you can see it. When you apply for a loan, lenders, insurance companies, and collection agencies can view your credit report, but only with permissible purpose.
Your employer cannot see your credit report unless you give them express permission.