Q & A: Credit

Click a question to jump right to the answer:

  1. Could bad credit prevent someone from getting a home?
  2. Could my credit score affect my ability to get a home loan?
  3. How can I clear up excessive debt?
  4. How do I find out what my credit report says?
  5. What do I do about bad credit?
  6. What do I do if I get turned down for a loan?
  7. What if there is a mistake on my credit report?
  8. Where can I get a copy of my credit report?
  9. Where can I get information on consumer credit laws?

Could bad credit prevent someone from getting a home?

Yes. One of the factors lenders consider when approving mortgage loans is the applicant’s credit score. If the credit score is too low, they may deem the applicant too high of a risk for a loan. But don’t lose hope if you currently have a low credit score as you can raise your credit score over time. Meet with a financial advisor to discuss your options and to get on a path to a stronger score.

Main Topic List Back To Questions

Could my credit score affect my ability to get a home loan?

Yes. Prior to offering a home loan, lenders will access your credit report to review your credit history. Lenders base the mortgage rate on the credit score - the higher the score, the better the mortgage rate. If a credit score is too low, the lender may deem the borrower too risky and deny the loan. If your loan application is denied based on your credit score, don’t become discouraged. There are programs to help raise your credit score and put you on the path of homeownership.

Main Topic List Back To Questions

How can I clear up excessive debt?

If you currently have an excessive amount of debt, it may be difficult to obtain a mortgage loan. But, there are ways to remedy your debt, improve your credit score and get on track to purchasing a home. To find out the best way to eliminate your debt, meet with a trusted financial advisor who can asses your current financial state and make recommendations for your future.

Main Topic List Back To Questions

How do I find out what my credit report says?

To receive a copy of your credit report, contact one of the three national credit report agencies: Equifax, Experian or Trans Union. It is recommended to review your report from all three agencies as each may be different. If you notice any mistakes or discrepancies, contact the agency immediately to correct the report.

Main Topic List Back To Questions

What do I do about bad credit?

If bad credit is preventing you from obtaining a home loan, don’t lose hope. If you are willing to work on improving your score, it can be done. Meet with a trusted financial advisor who will show you what steps need to be taken to raise your score to a desired level.

Main Topic List Back To Questions

What do I do if I get turned down for a loan?

Ask the lender for a full explanation on why you have been turned down for your loan. Then, depending on the reasoning, take immediate steps to rectify those factors. For example, if your credit score is too low, they may deem you too high of a risk for a loan. But, if you meet with a financial advisor to discuss your options, they will be able to get you on a path to a stronger score.

Main Topic List Back To Questions

What if there is a mistake on my credit report?

If a mistake is found on your credit report, contact the credit bureau you obtained the report from and inform them of the error. They will then provide you with instructions on how to dispute the error. Also, be sure to contact all three major credit agencies - Experian, Equifax and Trans Union – as the error will need to be corrected with all three bureaus individually.   

Main Topic List Back To Questions

Where can I get a copy of my credit report?

To receive a copy of your credit report, contact one of the three national credit report agencies: Equifax, Experian or Trans Union. It is recommended to review your report from all three agencies as each may be different. If you notice any mistakes or discrepancies, contact the agency immediately to correct the report.

Main Topic List Back To Questions

Where can I get information on consumer credit laws?

The Federal Trade Commission, http://www.ftc.gov, provides information and resources regarding consumer credit law and protection.

Main Topic List Back To Questions