Every consumer should review his/her credit report at least once a year. The Fair and Accurate Credit Transactions Act (FACTA) which was enacted on December 4, 2003 requires that the three nationwide consumer reporting agencies – Equifax, Experian, and Trans Union – provide to consumers, upon request, a free copy of their credit report once every 12 months. Reviewing your reported credit profile is essential to ensuring there is no erroneous information on the report, which could damage your credit rating and negatively impact your ability to acquire mortgage financing.
When you review your credit report, you will notice that the three different agencies likely have assigned different scores to your profile. In most cases, mortgage lenders look at the middle of these three scores to determine your qualifying credit level. This is what is known as your "mid score."
When you review your credit report it is possible that there is a list of factors that are negatively affecting your score. The first factor on the list is the one that has the most impact on your score, they are all listed in order of importance. It is also possible that the list of negative factors is ranked in a different order with all three major credit bureaus.
Usually your credit scores will not automatically come with a free copy of your credit report from each of the 3 credit bureaus. To obtain your actual credit scores as well you will normally be required to upgrade your report and pay a nominal fee. There are many different types of services and upgrades that are available to you when you obtain a free copy of your credit report. If you sign up for any credit services or wish to purchase any of these additional items please make sure you know exactly what you are paying for.
