Understanding Credit

Nov 19th, 2010 | By | Category: The Mortgage Connection

Mortgage Connection | The Sahuarita ConnectionBy Mike Morgan of Peoples Mortgage Company 520.954.7686

There are many things that go into making your credit score. Only a portion is determined by paying your bills on time. The chart to the right shows a clear picture of what makes up your score.

Personal Information … compiled from credit applications you’ve filled out including your name, current and previous addresses, social security number, date of birth and current and previous employers. It may contain incorrect information if at some point information from an application was input incorrectly.

Credit History … The majority of the credit report consists of details about credit accounts that were opened in your name. Account details, which are supplied by creditors include the date the account was opened, the credit limit, monthly payment terms, current balance and a history that shows whether or not you’ve paid the account on time. Closed or inactive accounts can stay on your report for 7 to 11 years from the date of their last activity.

Credit Inquiries … The reporting agencies record an inquiry whenever your credit report is shown to another party such as a lender, service provider, landlord or insurer. Inquiries remain on your report for up to two years and during the lending process they will require written explanation.

Public Records
… Matters of public record obtained from government sources such as courts of law – including liens, bankruptcies, and overdue child support – may appear on your credit report. Most public record information stays on your report for 7 years but could be longer.

A score of at least 620 is required in order to obtain a mortgage loan.  Should you find your score lower than that we have options that may help you improve your credit score.

Call me with any questions you may have at 520.954.7686. I appreciate the opportunity to earn your business.
Email address: morgan@peoplesmortgage.com LO LICENSE # 0912532   LO NMLS# 224433   BKBR# 0115327  COMPANY NMLS# 6274

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