What Your Credit Report Agency Provides

Before you meet with a lender, order your credit report agency file along with with current FICO score. Why? You want to be looking at the same thing your lender sees when he or she evaluates your mortgage application. You're allowed one free report every year from each major credit report agency: Trans Union, Experian, or Equifax.

Think of a credit report agency as a scribe who just reports the facts, ma'am. They compile information into a credit report that shows all your activity going back 7 years, and sometimes more.

Your Credit Report Lists:
All your open and closed accounts within that period. It shows how much you currently owe, what your highest balance was, what each credit line is, and whether you made all your payments on time. If you miss one payment, that is generally ignored, but if you miss payments for more then 2-3 months, the lender will question whether or not you will make your monthly payments to them.

Once you have your credit report, check it for accuracy. If there is any information that is incorrect on your accounts call your lender immediately. Notify the credit report agency also, and make sure to document your case with any supporting evidence.

Can a Credit Report Agency Help Bad Credit?
No. The credit report agency is just there to put the information together. If your credit is poor, you can often add an explanation about this to your mortgage application. Enclose a written document stating the reason for the particular points in your credit report, i.e. someone stole your identity, or you are disputing information that was incorrectly placed on your report. If the information in the report is correct, you have to live with it.

If you have poor credit and you would like to repair it before your loan, unfortunately, there isn't much you can do. The process takes months because you need to establish noticeable new patterns. The best thing you can do is start using your credit responsibly, pay down your debt and in time this will be reflected on your credit report. In the meantime, your lender can look at other factors, such as a guarantor, or your net asset worth. The latest and most popular resource for credit reports is the Internet. You can find totally free credit reports from a variety of providers.