Agility Mortgage Corporation

Building A Better Credit Report

Your Credit Report

When you obtain credit, whether it be through a credit card, personal loan, mortgage, or insurance, the credit reporting agency compiles a report of your information. This information is used to develop your credit score, which is calculated from a wide-range of information in the following categories:

• Payment History—includes payment information on specific types of accounts, adverse public records, severity of delinquency, etc.
• Amounts Owed—includes amount owed on accounts, number of accounts with balances, proportion of amount still owed, etc.
• Length of Credit History—includes time since account opened, time since last activity, etc.
• New Credit— includes number of recently opened accounts, number of recent credit inquiries, etc.
• Types of Credit— includes number of types of accounts, etc.

Your credit report takes into consideration positive and negative information in each of the above categories. The credit reporting agency does not base your credit score on your race, ethnicity, religion, national origin, sex, marital status, age, salary, occupation, employment history, where you live, interest rates on your accounts, child/family support obligations, information not on your credit report, or if you are in credit counseling. Certain types of credit inquiries are also not included when calculating your score.

Why We Use Your Credit Score

Your credit scores provides lenders with a quick, objective method to assess your credit worthiness. Lenders use your credit score to help determine your loan approval. The higher your credit score, the easier it will be for you to receive an automated loan approval.

Many times borrowers who receive an automated loan approval also obtain lower interest rates and may have fewer conditions attached to their loan approval. If you do not receive an automated approval, your credit report can help lenders evaluate your credit worthiness and extend credit to you, even if your scores are lower but your payment history has improved.

Your lender will likely offer products to you depending on your credit score. Please speak with your Loan consultant for more information about loan products and interest rates.

Improving Your Credit Score

It is important to maintain a healthy credit score. There are no quick-fixes to improving your scores. The following tips will help you manage your credit responsibly:

• Pay your bills on time. Delinquent payments can have a major impact on your credit score.
• Contact your creditors if you are having trouble paying your bills. Creditors will often work with you to help you manage your debt.
• Keep your balances low on credit cards. High debt can negatively affect your score.
• Pay off debt rather than moving it around.
• Closing unused credit cards will not improve your short term credit score.
• Don’t open new cards you don’t need to increase your available credit.
• Beware of opening too many accounts too quickly.
• Shop rates for loans within a specific period of time. All inquires for certain types of loans count as one inquiry if made within a predetermined amount of time. For example, when shopping for a mortgage, each credit inquiry made by a lender within a 45-day period counts as one inquiry on your credit report.
• Re-establish your credit if you have had problems. Paying new accounts responsibly will help improve your score over time.
• Apply and open new credit accounts only as needed.
• Manage your credit cards responsibly.

Checking Your Credit Report

It is important to make sure that all the information that appears on your credit report is correct. You are strongly encouraged to check your credit report once a year, especially before making large purchases. Your credit report is not affected by consumer-initiated inquiries. To request of copy of your report, contact the credit reporting agencies below.

Equifax
(800) 685-1111
www.equifax.com

Experian
(888) 397-3742
www.experian.com

TransUnion
(800) 888-4213
www.transunion.com

You may request all three credit reports from The Fair Isaac Company
www.myFICO.com

If you believe that your credit report contains incorrect information, you must notify the credit reporting agency in writing with copies of supporting documents. The credit reporting agency must investigate and respond to your inquiry within 30 days. You should also notify your Loan Consultant if you are applying for a loan. Your Loan Consultant will order another credit report after changes have been made by the credit reporting agency.