Why Home Buyers Should Check 3 Bureau Credit Report and Scores

When you are buying a home, it is imperative to check 3 bureau credit report and scores on a regular basis during the time period leading up to your purchase. For most people, their home is the single largest purchase that they are going to make over the course of their lives and their home is also where the bulk of their net worth comes from. This makes it imperative to make smart choices when it comes to your home, which means keeping careful tabs on your credit when you are getting ready to buy.

Checking 3 Bureau Credit Reports and Scores Helps Get Your House

When you make an offer on a house, you usually have a limited period of time to close on the deal before the offer falls through and you end up not getting the house (and even perhaps losing your escrow money). This means you don’t want anything to delay the mortgage lender from giving you a loan. Unfortunately, a mistake on your credit report could do just that.

If you have incorrect data or wrong information that makes your credit score much lower than it should be, you could end up getting denied for a loan. This, in turn, could result in you potentially losing the house. While you can correct the mistakes with your credit report, there may not be time to do this and get the loan before the home is gone. Don’t take that risk; instead, check your 3 bureau credit reports and scores regularly to ensure that your data is accurate.

Checking 3 Bureau Credit Reports and Scores Helps You Get Lower Rates

Lenders not only look at your 3 bureau credit reports and scores when deciding if you should get the loan but they also use your score to determine the amount of interest that you are going to have to pay. A higher interest rate can cost you much, much more over the time when you own the house. As such, it is important to correct errors that raise your interest rate and also to see areas for improvement where you might be able to raise your credit score before buying the house.

Checking 3 bureau credit reports and scores lets you keep an eye on how lenders are going to view your payment history and creditworthiness so you can make the changes you need.

Check You Scores and Report Today

If you are thinking about buying a home any time soon, it is never too early to start keeping a close eye on your credit. To learn how to check your 3 bureau credit report and scores, visit Credit Report 123 today.

How to Understand Your 3 Score Credit Report

When you want to keep tabs on your credit and know how lenders are going to look at your loan applications, it is a good idea to get a 3 score credit report. This report will include details on your past borrowing behavior from each of the three major credit bureaus in the United States. The report is also going to include a credit score, which is a three digit number that ranks whether you are a good borrowing risk or not. It is important to understand your 3 score credit report so you will have a good idea of whether a lender is going to look favorably at your loan application or whether you are likely to be denied a loan or charged more due to bad credit.

The Scores on Your 3 Score Credit Report

The scores on your 3 score credit report are the most critical part of the report since many lenders just look at the score and don’t go into detail about the specifics of the report.  The score is determined by a proprietary formula that each of the credit bureaus use. It is based on your payment history; how much of the credit you have available that you actually use; the length of time you’ve had credit; the mix of different kinds of debt; and whether you’ve applied for a lot of new debt lately. If you have a score above around 720-740, you are likely to be able to easily qualify to borrow money and you can expect to get favorable rates. A low credit score of around 640 or lower is going to potentially prevent you from borrowing or result in you being charged a high rate.

The Credit Card and Debt Data on Your 3 Score Credit Report

In addition to the credit score, your 3 score credit report is going to have information on all of the different borrowing accounts that you have including your mortgage loan or your car loan as well as credit cards. The report will list what you owe; how much credit you have available; and the payment history for each account.  This is the data that is used to credit your score.

Check Your 3 Score Credit Report Carefully

You should carefully review the details on your accounts and payment history to see if there are any mistakes. Some reports do have errors and you’ll want to get those corrected right away. Spotting mistakes and understanding your credit score are the key reasons why you should check your 3 score credit report on a regular basis. It is easy to do this, and you can learn more about how you can get your 3 score report by visiting Credit Report 123.

Why It’s Important to Check All Three Credit Reports and Scores

Financially-conscious consumers understand that it’s important to check all three credit reports and scores. A credit score is a reflection of your credit worthiness, and it is what lenders will use to determine whether or not to lend to you. Not only that, but credit reports and scores are an effective way to ensure that your information has not been compromised.

All Three Credit Reports and Scores Mean Multiple Scores

Most consumers are aware that they have three credit reports which are generated by the three major credit bureaus: TransUnion, Equifax, and Experian. However, many do not realize that each credit bureau also creates its own credit score for an individual based on the information it has on file for that consumer. These numbers will only vary by a few points or so for the most part, but there are times when the numbers vary significantly. This is an indicator that something is amiss, which is why it is important to check your credit score from all three credit bureaus in addition to your credit reports.

All Three Credit Reports and Scores Give An Accurate View of Financial Records

Checking your credit reports regularly allows you to ensure your personal information is accurate, the appropriate history has been properly reported, and that your personal information has not been compromised. In addition to your credit reports, it is equally important to check your credit scores. The scores will vary slightly between the different bureaus; however, if there is a large variance, it could indicate something that needs attention. It is important to note that a variance could be the result of a creditor not reporting to a particular credit bureau. However, since credit scores are used to determine your eligibility for lending, it is important for your credit report and score to accurately reflect your usage and history. The best way to do that is to ensure that all of your credit records are accurate, and all information has been appropriately reported.

All Three Credit Reports and Scores Help Prevent Identity Theft

Identity theft is on the rise in the United States, and it can ruin a person financially if they are not diligent with their credit. This is one of the best reasons for you to keep an eye on your credit files. If mysterious creditors suddenly appear on your credit report, or your score suddenly drops for no reason, you may be experiencing identity theft. From there you can place fraud alerts, or in severe cases, a freeze, on your credit reports to help prevent further damage. If the fraudulent accounts have already hit your credit report, you can immediately contact the creditor and inform them of the theft so that accounts can be closed and further attempts to use your credit will stop. By proactively checking your credit reports and scores, you are able to prevent identity thieves from severely damaging your credit profile, thus keeping your good standing intact.

For more information on checking your credit reports and scores from the three major credit bureaus, be sure to check out http://www.identityguard.com.