Credit Basics
What is a credit report ?
Do I have a right to know what’s in my report?
What type of information do credit bureaus collect and sell?
Identification and employment information
Payment history
Inquiries
Public record information
What is credit scoring?
Why is credit scoring used?
How is a credit scoring model developed?
How reliable is the credit scoring system?
What can I do to improve my score?
- Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
- What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.
- How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances.
- Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at “inquiries” on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not counted.
- How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.
What happens if you are denied credit or don’t get the terms you want?
Fair Credit Reporting Act
- You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.
- You have the right to know the name of anyone who received your credit report in the last year for most purposes or in the last two years for employment purposes.
- Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.
- You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.
- If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.
- You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.
Office Hours
Monday | 8AM–5PM |
Tuesday | 8AM–5PM |
Wednesday | 8AM–5PM |
Thursday | 8AM–5PM |
Friday | 8AM–5PM |
Saturday | 8AM–5PM |
Sunday | Closed |
***Disclaimer: This calculator is offered for illustrative and educational purposes only and it is not intended to replace a professional estimate. Calculator results do not reflect all loan types and are subject to individual program loan limits. All calculations and costs are estimates and therefore, Equitable Mortgage (EMC) does not make any guarantee or warranty (express or implied) that all possible costs have been included. The assumptions made here, and the output of the calculator do not constitute a loan offer or solicitation, or financial or legal advice. Please connect with an EMC loan professional for a formal estimate. Every effort is made to maintain accurate calculations; however, EMC assumes no liability to any third parties that rely on this information and is not responsible for the accuracy of rates, APRs or any other loan information factored in the calculations.