How - and Where - to Check Your Credit Report Before Applying for a Mortgage
Q: How can I request credit reports from a major credit agency? Is this a step I should take before applying for a mortgage?
A: Easily. And Yes.
By law, everyone is entitled to one free credit report each year from each of the three major credit reporting agencies. Reviewing this information is essential before applying for a mortgage. These are the three bureaus:
- Equifax Information Services, P.O. Box 740241, Atlanta, Ga. 30374, 800-685-1111, www.equifax.com.
- Experian, P.O. Box 2104, Allen, Texas 75013, 888-397-3642, www.experian.com.
- TransUnion Corp., P.O. Box 390, Springfield, Pa. 19064, 800-916-8800, www.transunion.com.
A credit report helps lenders assess risk when determining eligibility for a bad credit home loan or a different mortgage product.
It’s a kind of fiscal fitness statement of one’s credit habits, naming your credit accounts, identifying them by type and tracks balances, credit limits, payments, available credit, open-or-closed status and other information that reveals how well or how poorly you pay each account.
When you apply for a mortgage loan or other credit, the creditor takes a look at your credit report, among other documents and data, to determine if you qualify for credit and to determine how much credit it will grant you. Consequently, it’s a good idea to keep tabs on your report so you can correct any mistakes that could adversely affect your application, and to take steps to improve your credit whenever possible.
An unblemished credit report not only gives you fast access to credit, you also pay less in mortgage interest rates than you would if your report contains blemishes.
Under federal law, official, free access to your credit report is available through a single site, AnnualCreditReport.com, by phone (877-322-8228); by mail (Annual Credit Report Service, P.O. Box 105281, Atlanta, Ga. 30348-5281), or by filling out the request form on the Federal Trade Commission’s Web site (ftc.gov).