A credit reporting agency is a company that collects information regarding individual's credit reports, and makes that information available to lenders, financial institutions and more. There are three major credit reporting agencies in the United States: Equifax, Experian and TransUnion. Each credit reporting agency may have different information regarding your credit, which is why monitoring your credit report for errors is very important.
Your credit report is a "file" of your credit history – information about your current and past loans, credit card accounts, credit limits, balances, payments and any judgment liens, are all included in your credit report. Your credit report does NOT include information about your personal bank or investment accounts.
Your credit score is calculated based on information provided by all three credit reporting agencies.
Your score is based on five main factors. Percentages are estimates of the factor's average score impact.
The three Credit Reporting Agencies (CRA) compete to collect U.S. consumer's information. While the data from each company should contain most of the same information, there may be some differences. This can cause the scores calculated based on each CRA to be different. Two large companies which produce Credit Scores are:
1) Fair Isaac Corporation (FICO) is a scoring model used by lenders to judge your reliability when it comes to paying back a loan. FICO has been developing and changing over the past 25 years, and has over 15 different scores for mortgage, credit cards, auto loans and more.
2) VantageScore® is a fairly new (2006) advanced scoring technique developed by the three nationally recognized credit reporting agencies. VantageScore® is also used by lenders and banks to judge your reliability. The model was created to be more predictive and consistent, creating less confusion and hassle for you.
Since the scores are measured a bit differently, and lenders could have proprietary scores, we recommend keeping track of your VantageScore® month-to-month. You should not worry about differences between each type of credit score. Focus on your debt awareness, payment history, spending behavior and how each impacts your VantageScore®.
A soft credit inquiry describes when you or a company pulls your credit report as part of a background check or for educational purposes. These inquiries may be recorded on your report, depending on the reporting company, but do NOT affect your score.
A hard inquiry describes when a lender, creditor, or financial institution pulls your credit report while making a lending decision. These require your prior authorization, may lower your score, and remain on your report for two years.
Viewing your complete credit report on QLCredit is a soft inquiry and will NOT impact your score.
Make sure you check your complete credit report every month. Protect yourself by creating an account with QLCredit and get an updated report to help check for any suspicious activity.
Check for these typical credit notification red flags:
Click here to dispute the information with each credit reporting agency.
If you are disputing an error online with Equifax®, they may request a ten-digit confirmation number - you do not need this number to submit your dispute.
Your credit score and complete credit report are updated throughout the month. Be sure to sign up with QLCredit to monitor your credit report once a month.
No. QLCredit’s “soft" inquiry on your credit report is accessed for your personal use, and not for lending decisions, thus never impacting your score.
You probably already realize that a good credit history can improve your chances of getting a competitive mortgage. Both your credit score and report are used in determining what programs you are eligible for. Credit scores are determined based on the information on your credit report. Higher credit scores generally help qualify you for the most competitive programs.
The tricky part is that you have multiple credit scores.
Other important determining factors include:
Like any other goal, qualifying for a mortgage is achievable with the right tools and awareness.
Learn where your credit needs to be and find specific opportunities to improve:
We use industry-leading security measures to verify your identity and protect your information including firewalls, encryption and Secure Sockets Layering (SSL).
We need your Social Security Number to retrieve your FREE credit score and credit profile information from our credit reporting company partner. This prevents others who do not know your Social Security Number from stealing your credit information.
We're here to help! If you can’t find an answer to your question please email us at Help@QLCredit.com.