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 history.

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.