What makes my credit report for mortgage?


When applying for a home loan it is necessary to obtain a credit report for the mortgage application. The three major credit bureaus in the US are Experian (TRW), Equifax (CBI) and Trans Union. Mortgage rates, conditions and terms are based on the FAIR ISAAC credit scores as follow:

FICO score for Experian, Beacon score for Equifax and Empirica score for Trans Union.

Recently, the three credit card bureaus have been implementing the Vantage score system to represent a single credit score rather than three differing scores on the credit report for a single customer.

The credit report for mortgage largely determines whether the borrower will be approved, or not. Even more so nowadays when automatic underwriting has taken over and a credit score has become a first priority.

What is the credit report based on?

There are several factors to have in mind that can influence your credit score a lot and hence your mortgage application.

Your credit history and accounts, all public records such as foreclosure, bankruptcies, tax and any liens will often be reported to only one or two of the bureaus, therefore credit scores may differ when provided by only some of the bureaus.

You should know that to have no credit history is the same as having very bad credit. To have little credit history equals to having bad credit. Credit scores are statistically based and will change even if no change has been introduced recently.

Since the credit report for mortgage will be crucial in determining whether your loan application will be approved, you'd better make some efforts to improve it before you submit a mortgage application.

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