Check your credit | Consumer Financial Protection Bureau

What to do now

Get copies of your credit reports 

There are three major credit report companies – Equifax, Experian, and TransUnion. You can get a rid copy of your credit report once per year from all three companies at .

Check your reports carefully for errors

Look on your credit reports for any debts or accredit cards you don ’ triiodothyronine acknowledge. besides check for challenge items that still show up even though they were resolved in your favor. A late or miss requital international relations and security network ’ t an mistake if it actually happened .

Get one or more of your credit scores

A credit score is a numeral calculated based on the information in your credit rating report. You actually have many different recognition scores, and there are many ways to get a credit score .

  • You may be able to get a credit score for free, or you can buy a score. Learn more about your options for getting a credit score.
  • Most mortgage lenders use FICO® scores. Learn more about what a FICO score is.

What to know

Checking your own credit won’t hurt your credit scores

When you check your own credit reports or scores, the request is processed differently than when a lender checks your credit. Checking your own credit won ’ t hurt your scores .

Credit scores range from 300 to 850

Higher scores represent a better credit history and make you eligible for lower interest rates .

  • As of March 2015, the median FICO score nationwide was 721 – half of consumers with a FICO score had scores above 721, and half had scores below 721.

The score you receive can differ depending on which credit reporting company is used

Most mortgage lenders look at FICO scores from all three companies and use the middle grudge for deciding what rate to offer you.

  • If you are applying for a mortgage jointly with a co-borrower, lenders typically look at both borrowers’ middle scores and use the lower one to decide the rate and approve the loan.

The rate you are offered on a mortgage can vary quite a bit depending on your credit score

Your credit score is only one factor in a mortgage lender ’ randomness decision, but it ’ s an crucial one. While there are no firm rules approximately precisely how your accredit score affects the interest rates you may be offered for a home plate loan, in general :

  • The best rates go to borrowers with credit scores in the mid- to high-700s or above. These borrowers typically also have the most choices available to them.
  • Borrowers with credit scores in the high-600s to the low-700s typically pay somewhat higher rates.
  • Borrowers with credit scores in the low- to mid-600s range generally pay the highest rates and have the fewest choices. Borrowers in this range may have trouble qualifying for a loan, depending on the loan type and the specific lender.
  • Borrowers with scores below 600 may want to improve their credit before applying for a mortgage. If you need help improving your credit, contact a HUD-approved housing counselor.

explore interest rates for different credit scores to get a sense of how a lot your credit score matters.

A housing counselor can help you get your credit report and check for errors

A house advocate can be a adept resource throughout the base bribe process. You can find a HUD-approved house counselor on-line or by calling 1-800-569-4287 .

source :
Category : Finance

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