Information about Credit Reports & Credit Scores 


There are Three credit reporting bureaus
Equifax, Trans Union and Experian formally (TRW).

Credit  scoring known as FICO is a expedient way to determine a borrower's creditworthiness. It is a mathematical formula that is derived from the borrower's credit history and present credit situation. Credit scores are used by lenders to assess the level of risk involved in extending credit to borrowers.

When a lender runs your credit there is a 3 digit score that automatically shows up on all credit bureaus.  Each bureau has its own 3 digit score and each will have a different score.  Your scores are different because creditors report your payment history to one or two of the three credit bureaus.  Example if you had a late payment with a creditor and that creditor only reports to two of the tree credit bureaus the third credit report should have a higher score.

Most lenders will take the middle score for grading a borrowers credit. Below is a chart showing what credit scores goes with what credit grade.


Credit Grade

Credit Score


720 and Higher


700 to 719


680 to 699


660 to 679


640 to 659


620 to 639


600 to 619


599 and Below


Here are some basic things that can effect your credit score.
Late Payments & Delinquencies
Length of Credit History
Length of Residency
Job History
*Using more than 75% of your credit card and or Loans
and recent Credit Inquires

*If you have a credit card with a $1,000 credit limit and you owe more than $750.
Your score will drop even lower if you have a number of accounts over the 75% limit.


Credit scoring is NOTalways accurate. Several factors that are used to calculate credit scores have nothing to do with a consumer's payment history or present credit situation. Age, education level, occupation, information that is "unknown" to the credit bureaus, information that is not updated by creditors, and number of inquiries do not reflect a consumer's true credit profile, yet they influence the credit score.


How to correct your credit report

If there is an item on your credit report that you believe is inaccurate, the first thing you should do is contact the creditor. Ask the creditor to correct the information. Always get a letter from the creditor on their letterhead briefly stating the situation and or mistake with their signature and job title.

Don't assume that the creditor will correct the problem.    Once you get the letter from the creditor forward a copy to all 3 credit bureaus with your own brief letter about the problem/mistake. Do not express any emotion in your letter just explain the facts.

Make a file of your letters. Keep a log of the dates you talked to the creditors and credit bureaus and when you mailed your letters.

We have talked to so many people that have stated "That was cleared up years ago" and it is still showing up on their credit.  If you don't have a letter correcting the problem you are at square one.  If you have a copy of the letter you are as good as gold and it is easy to correct.  It is wise to hang on to all the letters for at least 7 years. Seven years is the length of time that derogatory credit stays on your credit report.  Ten years for bankruptcies (10 years from the discharge date).

If the creditor will not correct the information and/or will not give you a letter.  Write a letter to all three Credit bureaus requesting that they investigate the item. Briefly explain the reasons why the item is inaccurate. Do not express any emotion in your letter just explain the facts. Enclose copies of any supporting documentation that you have (canceled checks front & back, receipts, supporting letters, statements, etc).

The credit bureaus will investigate the item(s) and notify you of its decision within 30 days. If the credit bureau agrees that the accuracy of the item, the item will be corrected or deleted from your credit report. You will receive an amended copy of your credit report reflecting the change.


Links to the Credit Bureaus:

   Experian       Trans Union      Equifax

Just click on the link and it will take you to that credit bureau.

We hope this helps you.   Home Loans Nationwide

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