A quitclaim deed transfers your interest in a property to someone. It is typically used by friends, relatives and spouses. It states that you agree to convey your interest in a property, if you have any interest, but it does not state that you, in fact, have an interest. Deeds are not reported to the credit bureaus, so they have no affect on your credit score. Computers calculate your score using a number of factors, including your credit history, the amount you owe on each card compared to your credit line, and the type of credit you use, such as revolving and installment credit, plus credit from finance companies. They also consider when each account was opened.
Credit Agencies
The three major credit-reporting agencies in the United States are Experian, TransUnion and Equifax. Not all creditors report to all three credit bureaus, so the information found in each of your files will be slightly different. The three bureaus use the same proprietary program to determine your FICO credit score. Since each agency will have slightly different information in your file, your credit score from each agency will usually be slightly different.
Deed Effect
If you have a mortgage loan appearing on your credit report, it will have more of an effect on your credit than a credit card or an installment loan. If you transfer your interest in property with a quitclaim deed or any other type of deed, it records at your county recorder's office. It will not appear in your credit report, and it will not have any effect on your credit score.
Credit Report
Review your credit report on a regular basis. If you want to see your report, but you are not concerned about your credit score, you can obtain a free copy from each bureau once a year. If you rotate your request every four months, you can get an up-to-date copy of each report each year. Free reports are available at the AnnualCreditReport website. You can find out what your credit scores are from several commercial websites. Some of the sites will give you a free trial to review your scores, but if you do not cancel, you will have to pay for the service.
Considerations
If you pay your accounts on time and limit the amount of credit you use to a maximum of 30 percent, you will usually maintain a good credit score. Of course, if you have a major credit event such as a bankruptcy or a foreclosure, you can expect your score to drop. Foreclosures remain on your credit report for seven years, and bankruptcies remain for 10 years. If you make your payments on time, your score can return to an acceptable level. Any negative credit reported will drop your credit score immediately, but it takes several years of good credit history to offset the negative.
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