Building Good Credit

Better Credit, Better Mortgage Rate: Understand and Improve Your Credit Score

Your credit record has a significant impact your probability of securing a mortgage. It also influences the interest rate that you are offered. It’s important to improve your credit score as much as possible in order to get the best interest rate available.

Your Credit Record

Your credit record documents how well you have handled credit in your past and how you use it right now. Your credit record is kept electronically by each of three private companies: Equifax, Experian, and Trans Union.

A credit report lists the information in your credit record at one of these companies. It shows your debts and payment history with people and companies who have loaned you money, such as banks, credit card companies and department stores. It shows whether you pay bills on time and whether you pay the proper amounts due. Your credit report also shows any history of tax liens, bankruptcies, etc., even if any of these have happened several years ago.