If you want to purchase a home, you go to a mortgage company for the money. After filling out your application, the lender will check your credit rating to determine first if you can obtain the money and if so, how high of an interest rate you will pay. If you apply at a variety of lenders, each one will check your credit which will affect your overall credit score. You want to have a high credit ranking so only apply where you know you have a good chance.

If you are applying for a loan through a lender that offers unsecured loans or mortgage, the credit check that they do will only determine if you are responsible enough to pay back your loan. Credit reports are generated under the federal law and issued only through credit bureaus, such as Experian, TransUnion, and Equifax. When a lender looks into your credit, they must enter the information requested which will give them a report containing the credit report they needed to determine whether you get your loan or not.

A good credit score is around 720 points but can be a little bit higher or lower than that. This number will get you a loan and a lower interest rate and it will reassure the bank that you will be able to pay back your loan.

There are two important factors that play a role when viewing your credit report. One is your credit history and the second is your credit score. Anytime, you have applied for a loan and was denied, you should obtain a free credit report so you can view what is on your credit record and you will see what everyone is seeing too. You will have the opportunity to repair and improve your credit score. It takes time to repair your credit score and it takes time to have something removed if it is on your credit report by mistake so be sure that you check it often to determine whether the report is in progress of being repaired.

There are sometimes inaccuracies in a credit report so its up to you to report them. This could also mean that someone has stolen your identification and you need to investigate further. If you think that your ID has been stolen, you need to report this to the credit referral agency and in most cases, law enforcement.