Credit Reports – What Do They Show?
A credit report is a detailed accounting of your credit history that includes much useful information. Knowing what's in your file -- and ensuring that the data there is accurate -- is vital when applying for a mortgage.
Personal Information
When you fill out a credit card application, you are providing the Credit Information Industry with updated information such as your name, current and recent addresses, Social Security number, date of birth, and current and previous employers. It’s not a bad thing that your credit file is up to date. Just be sure to complete all applications for credit as accurately as possible.
Credit History
Most of your credit report consists of details about your credit accounts, includingthe date the account was opened, the credit limit or amount of the loan, the payment terms, the balance, and a history that shows whether or not you’ve paid the account on time.
Can you believe a late payment will stay on your report for seven years (up to 10 years if it was bankruptcy related)? If you don’t have a credit history, you may be able to document credit references manually in the form of an “Alternative Credit Report”.
Inquiries
Credit reporting agencies record an inquiry whenever your credit report is shown to another, such as a lender, service provider, landlord, or insurer. Inquiries remain on your credit report for up to two years and can lower your credit score as much as five points depending upon time period, the number of inquiries and other factors.
Public Records
Matters of public record obtained from government sources such as courts of law – include liens, bankruptcies, and overdue child support – may appear on your credit report for up to 10 years. Ouch!
What is NOT Included in Your Credit Report:
- Checking, savings, and investment account information
- Bankruptcies that are more than 10 years old
- Charge-offs or debts placed in collection that are more than 7 years old
- Gender
- Ethnicity
- Religion
- Political affiliation
- Medical history
- Criminal records
Have a question about your credit or qualifying for a mortgage in New Hampshire? Call Charley Farley at (603) 471-9300 or e-mail charley@charleyfarleyhomeloans.com.