A lender will pull your credit report if you apply for a loan. It has a choice of three reports to view, TransUnion, Experian and Equifax. The information on your report will help the lender determine if you will be approved or rejected for the loan.
Significance
The credit reports used by lenders can look somewhat different from those ordered by a consumer. Lender reports can be more difficult to read, at least for the average consumer.
FICO Score
If a lender has your FICO score from a credit report, it should be approximately the same as the FICO score you obtained from a different source. A FICO is a credit score.
Range
Lenders will take a look at your credit score. A score can range from 300 to 850. The higher your score, the better chance you have of being approved for a loan.
Effects
A lender will usually get your report from one of the three major credit reporting agencies. If it cannot locate any credit information based on information from one agency, it may utilize another one.
Considerations
To get your credit report, a lender will need your permission. It will need you to fill out an application with your personal information, such as name, address, date of birth and place of employment. Signing the application gives the lender permission to access your credit report.
Warning
A lender can also reject your application request if you have too much debt. If you have too much debt, it could mean you cannot afford to take on another loan payment. If you have a variety of collection accounts, judgments, liens or past due accounts, a lender may decline your credit request.
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