Credit Reports - H5WLD-03

In this episode of High 5s with Lender Dave, we talk about all things related to your Credit Report.

Pulling my CREDIT REPORT?

0:00 Overview
0:31 Intro
0:47 Why we need them
2:07 Drop in score for pulling
3:12 Reasons for Fico variations
3:50 Unfreeze your credit files
4:18 Credit reports last 120 days
4:52 What we see in a Credit Report
8:42 UDM - Undisclosed Debt Monitoring
9:08 Expect old creditors to start reporting bad debt again
10:13 Expect contact from multiple lenders due to "Trigger Leads"
11:15 See ya next time

Here is the outline. More details are in the video.

1) Credit Reports are needed for AUS – approval based on DEROGs / DTI / FICO /// everything considered by AUS

2) For most people a mortgage related credit inquiry will take less than five points off their FICO Scores*. - regained over time – no hit for 2nd mortgage pull in 15 - 45 days. For subsequent inquiries, a lender may just need LOE stating “getting Pre-qualified – no new obligation resulted from the inquiry”. / Inquiries make up only 10% of someone’s fico score. *https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

3) Differences in Fico may be just different algorithms used by diff lenders not a result of another inquiry

4) Unlock them all! Credit freezes BAD – unfreeze them

5) Credit docs on Purchase last 120 days before new credit is needed.

6) What we see
a. Fico scores – one from each bureau TU, EXP, EFX
b. Tradelines = Creditor name / Open or closed / opened date / high balance or limit / current balance / min payment / count of 30-60-90-120 day lates / terms / current or delinquent / Type: Medical - Revolving - Mtg -Educational
c. Public records = BKs / Judgements / liens
d. Inquiries last 120 days - may lead to LOEs /
e. Employers - may lead to LOEs
f. Addresses - may lead to LOEs – "I lived there rent free" – "never heard of it" - etc

7) Undisclosed Debt Monitoring during the application process

8) Expect old creditors to start reporting again on bad debt – scores may go down as a result of derogs added between pulls

9) Expect a bunch of solicitations after a credit pull – Trigger leads - Check out TransUnion's policy here or just Google "Trigger Leads". https://www.transunion.com/solution/marketing-audience-segmentation/mortgage-leads

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