Home and Refinance Loan Credit Facts and Stats
Each credit reporting bureau follows specific guidelines
in which credit data is formatted in reports. The way
in which the information is formatted differs; however,
each credit report contains the same basic categorized
financial information. For example, the following credit
information is utilized to identify a consumer:
• A social security number
• Date of birth
• Employment information
The above information is not used in scoring. Current
and updated data is derived from information a consumer
provides a lending institution or financing company.
All credit reporting agencies report consumer’s
credit accounts or trade lines. All financing and lending
companies convey any account a consumer may have established.
A plethora of information is reported.
The account type, i.e., auto loan, credit card, bankcard,
home mortgage, etc., are identified in the credit report
under the trade line. Specific information is also included;
such as, the date the account was opened, the credit
limit, the account balance, loan amount or the payment
Other areas of detailed information contained and included
on the credit report are any ‘inquiries.’
Inquiries are the authorizations made by any lender
that a consumer has applied for loan, credit or financing.
The inquiry process occurs when a consumer applies for
a loan and it how inquiries appear on credit reports.
In the inquire section, a detailed list of companies
who have accessed a credit report over the last two
years are detailed in the report.
Moreover, the credit report delineates two types of
inquires: ‘voluntary,’ queries initiated
by the consumer’s request for credit, and ‘involuntary’
inquiries, anytime a banking institution orders a report
to make a pre-approved financing or credit offer via
the mail. Finally, credit reporting bureaus also compile
public record information, foreclosures, bankruptcies,
liens and judgments information suits, wage attachments,
from both county and state information on overdue debt
from collection agencies.