Credit ratings are built upon information provided by banks and other finance companies, based on your performance against past loans, credit cards, and bank accounts. If you’ve made timely payments and properly managed your bank balances, you probably have a solid credit rating.
Mortgage lenders use these ratings to evaluate you as a potential borrower. A good credit rating puts you in a better position to secure attractive financing rates on your mortgage.
It’s a good idea to check your credit rating, even if you’re sure you have an excellent record. Sometimes blemishes can appear in your credit history, without your knowledge. Mistakes can be removed—but only if you know about them and take steps to correct them.
Credit Reporting Agencies
Before applying for financing, review your credit report from all three agencies. The easiest way to do this? Visit www.annualcreditreport.com. (Or call 877-322-8228.) This centralized site allows anyone to request a free copy of their report, once a year, from all three reporting agencies.
To Learn More
We recommend these additional resources for more information on credit ratings: