Credit

What Type of Information Do Credit Bureaus Collect?

Credit bureaus gather four main categories of information:

Identification and employment information
This includes your name, date of birth, Social Security number, employer, and in some cases your spouse’s name. Credit bureaus may also provide details such as employment history, homeownership, income, and previous addresses if a creditor requests it.

Payment history
Your accounts with various creditors are listed, showing the amount of credit extended and whether payments have been made on time. If an account is sent to a collection agency, that event may also appear.

Inquiries
Credit bureaus keep a record of individuals or businesses that request your credit history. Inquiries for employment purposes are reported for up to 2 years.

Public record information
Items that are part of the public record, such as bankruptcies, foreclosures, or tax liens, may be included in your credit report.

Confusion Surrounding Credit Reports: Kent's Perspective

Equifax, Experian, and TransUnion are the three main credit reporting agencies. These companies collect and organize credit information and then provide it to a wide range of industries. There are also different scoring models used depending on the purpose.

The reason this matters is that consumers often have access only to certain models through portals such as Credit Karma, CreditWise, or the credit monitoring services attached to their bank or credit cards. While these scores are real, they are not necessarily the same scores lenders use when evaluating a mortgage application. In most cases, consumer scores are best for tracking whether your credit is trending up or down and for providing a general idea of where you stand. They are not designed to be used when lending or borrowing.

As a loan officer, Kent frequently notices how borrowers who believe they have a true 800 score are surprised when their actual mortgage lending score comes in differently. Sometimes the difference is positive, but more often it leaves borrowers feeling misled by a number that is rarely used in lending decisions. This becomes even more important when shopping for rates, as many people call lenders with a score that does not reflect their actual lending profile. Unfortunately, that can waste valuable time, effort, and energy.

Knowing your real mortgage lending score is both valuable and important. Let us help you determine your accurate score today.