credit report - Mortgage Loan - Credit Report Information

Credit Reporting and scoring - History and Tips Your ability to manage credit is an important factor in determining if you will repay your mortgage loan. How does the lender decide if you are a good credit risk? During the loan application process, the lender will obtain a credit report on you and any co-borrowers. Credit reports are provided by credit reporting companies/credit bureaus. They provide information about how you have managed debt, including: ' How much and what types of credit you use, such as credit cards, auto loans, or other consumer loans; ' How long you have had and used credit;and ' How promptly you pay your bills. The three major sources of credit information about consumers are Equifax, Trans Union, and Experian. Lenders will obtain your credit record from all three of these credit bureaus. The lender will evaluate this information to determine whether or not you are likely to repay the mortgage loan in a timely fashion. How does the mortgage lender evaluate the information in the credit report? One way is through credit scoring. What is a credit score? A credit bureau score, is one of many pieces of information that the lender will use when evaluating a mortgage loan application. A credit score is a summary of a borrower's credit report and a numerical measurement that reflects a borrower's management of credit. Your credit score is based on the records compiled by credit bureaus and includes the information reported each month by your creditors, such as the amount of existing credit you have and your payment history. A credit score considers all of the information in the credit report and converts this information into a number that helps the lender determine the likelihood that you will repay your loan on time. 00 is the lowest possible score, 900 is the highest. 680 to 700 is considered excellent, and less than 620 is typically considered sub-rime, though if there are errors on the report, this would be considered. Credit scoring is an objective process, based only on the infor­mation in your credit report. Factors such as age, race, religion, gender, national origin, marital status, your income, employment, and where you live are not considered in determining your credit score. Is credit scoring new? Banks and other lenders have used credit scoring for over 30 years for credit cards and other types of consumer loans, such as automobile and home equity loans. Now, credit scoring is being used in mortgage lending. Why is credit scores used? Lenders want to extend credit to people who will pay them back, and pay them back on time. They also want to be objective in making lending decisions. In order to approve your application for a mortgage loan, your lender must evaluate and understand many different risk factors, including your ability to repay the debt as well as how you have managed credit in the past. Because borrowers' credit histories can range from being very simple to being very complex, it is sometimes difficult to determine whether a given credit history is acceptable or unacceptable, or whether certain information represents a strength or a weakness. By using credit scoring, a lender can quickly and objectively evaluate your credit history in a consistent manner, and determine the likeli­hood that you will repay the loan as agreed. The use of credit scores not only improves the accuracy of the analysis of your credit history, but does so in a way that enhances the efficiency and consistency of the underwriting process. How does a lender get my credit score? When you apply for your mortgage loan, you will give your lender permission to check your credit history with the various credit bureaus. More than likely, the lender will obtain your files from the major credit bureaus: Equifax, Trans Union, and Experian. In addi­tion to obtaining a credit report, the lender will also request a credit score. Your score is calculated by the credit bureau -- not your lender -- and is based only on the information contained in each of the credit bureau's files. Myself webmaster of http://www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans. Article Source:http://EzineArticles.com/?expert=Anirban_Bhattacharya credit report - Bad Credit Tenant Loans - Finance Without Credit Enquiries Having bad credit mentioned against your name in your credit report makes you a very risky borrower for any lender if you are a tenant also. So the lender may even refuge you a loan or will put hard conditions to meet for the loan approval. In such a situation, you should find out a lender who is willing to offer bad credit tenant loans that are especially designed for offering timely loan to people having credit problems like arrears, payment defaults, late payments or county court judgments. Such borrowers are approved bad credit tenant loans without many inquiries on some relaxed conditions. Bad credit tenant loans are unsecured loans as the tenants are not required to place any security with the lender. So these loans are fully risk free for the tenants. The sole basis of approving bad credit tenant loans is that the tenant should have a convincing repayment plan to show that the loan installments will be repaid in timely manner. Bad credit is not a problem as the loan is especially meant for bad credit people. One should note that bad credit tenant loans carry higher rate of interest rate. However you should know your credit score because interest rate is determined on it. The lower the credit score, the higher will be the interest rate. The loan amount under bad credit tenant loan usually ranges from '5000 to '25000 depending on annual income, credit score and overall repaying capacity of the tenant. The loan amount can be used for any purpose like buying a car, paying for holiday expenses or clearing smaller debts. The loan has to be returned in shorter duration of 5 to 15 years. One advantage of bad credit tenant loans is that it gives an opportunity to the borrower to improve credit score if the loan installments are regularly paid. It would be wise to compare as many lenders as you can for interest rates on bad credit tenant loans. This way you can avail a comparatively lower interest rate. As far as sourcing is concerned, bad credit tenant loans are available from all lending institutions but online lenders should be preferred for a cost free processing, relaxed terms-conditions and timely approval of the loan.