Does Having Your Name on a Mortgage Deed Affect Your Credit?

Owning a home has no affect on your credit. Financing a home, however, does have a significant impact on your credit. Just because your name is on the deed to the home does not mean the credit bureaus will even know about it, because they do not check public records for home ownership. It is possible to have your name on the deed of a home with a mortgage and not be on the mortgage note.

Deed vs. Note

A deed is simply a document filed with the county, which tells the county who owns the property. When the county assesses the property taxes, they will send the property tax bill to the people listed on the deed. When the owners or the purchasers of a home obtain a mortgage, the mortgage company requires the homeowners to sign a promissory note. Mortgage companies often record these notes with the county so that they may foreclose on the home if the homeowners stop making the required mortgage payments.

Credit Reports

Credit reports do not actively look for information other than from public records showing liens, judgments, bankruptcy and foreclosure. Creditors, including mortgage companies, contact the three different credit bureaus and report the payment history of their loans. Creditors are not required to contact the credit bureaus. It may choose to contact only one, two or all three of the credit bureaus. The credit reporting agencies then compile this information onto a single document called a credit report.

Credit Bureaus

The three major credit bureaus are Experian, Equifax and Transunion. These three credit bureaus provide the majority of credit information in the United States. These credit reports may be accessed by several different companies, and not always just because you apply for a loan. Some companies pull credit reports on potential employees and even some insurance companies use credit information when determining insurance premium rates. The credit bureaus charge companies who want to access the person's credit report.

Credit Laws

There are laws that protect consumers from wrongfully reported credit items. These laws allow every person in the United States to obtain a free copy of their credit report each year. Annualcreditreport.com is the government-mandated web site where you may request a free copy of your credit reports online. If you find their items that are miss reported, Federal law provides you may request in writing removal of the wrong information. The credit bureaus that have 30-days to prove the information is accurate or remove it from your credit report.