Credit Reports

Keeping Up with Your Credit Scores

If you are serious about buying a home, having a good credit score is vital. Not only will it determine if you get a loan in the first place, it will determine what kind of interest rate you get. Better scores indicate better credit risks, so they get lower rates. That could save you THOUSANDS over the life of the loan.

The Devil Is In the Details

Each service figures the score differently. Looking at your credit report can find false information, like where someone reported a payment as late when it wasn't. Look over the reports you find and dispute anything that isn't accurate.

Find That Score

Everyone knows about FreeCreditScore.com. It requires you to sign up for a service. Outside of the cute commercials, I don't think that's worth paying for. There are other places out there but they have the same game: get you to sign up for a monthly service.

You're Entitled to a Free Credit Report Each Year

The government says you're entitled to a free credit report each year from each of the three major reporting bureaus. So don't pay a service for your report when you can get it for free just for asking. Go to annualcreditreport.com and get a copy of your report. There's just one small hitch to this, though: it gives you the report but you still have to pay for the score. But the fee is small and you don't have to sign up for a service.

Keep On Top of Things

Now that you know about it, set a reminder in your calendar to repeat each year. Tell yourself to get a report from one of the three bureaus. Set another reminder in 4 months to get a report from another bureau. Then set another reminder to get a report from the third bureau. By keeping on top of things, and doing it now, you can walk into a lender's office with confidence that you won't have much problem getting a loan and a good rate.