Understanding Credit Reports Why is my credit report needed for the home-buying process?
When applying for a home loan, your lender will want to know your credit profile. There are three national credit-reporting agencies, each of which collects information about your payment habits. This information is placed in three separate credit profiles, which are then used by creditors and lenders to assess your credit worthiness. Each credit-reporting agency reports information differently, which means your reports may not contain the same information. As a consumer, it is important to understand what each report includes and dispute any mistakes you may identify. Disputing credit reporting errors is your right under the Fair Credit Reporting Act (PDF Download), which was passed in 2004. To learn more about how your credit score is calculated, visit myfico.com.
