Credit Bureau Report
Definition and meaning of Credit Bureau Report in real estate.
A credit bureau report is a detailed record of an individual's borrowing and repayment history compiled by a credit reporting agency, used by lenders to assess risk.
In more detail
When applying for a mortgage, lenders request a tri-merge credit report, which combines credit history from the three major national credit bureaus: Equifax, Experian, and TransUnion. The report documents active credit accounts, credit limits, outstanding balances, payment history, and public records like bankruptcies or foreclosures.
Mortgage lenders analyze this information to verify that the applicant has a reliable track record of repaying debts on time. Any negative marks on the credit bureau report, such as late payments or collections, can lead to mortgage rejection or higher interest rates.
Key facts
| Category | Mortgages & Financing |
|---|---|
| Major bureaus | Equifax, Experian, and TransUnion |
| Required by | Mortgage lenders during the loan underwriting process |
| Watch out for | Inaccurate accounts, late payments, and collection actions |
A mortgage lender pulls a buyer's credit bureau report to check their payment history on credit cards and auto loans before approving their home loan application.
Frequently asked questions
How long do negative marks stay on a credit bureau report?
Most negative marks, such as late payments, collection accounts, and foreclosures, remain on a credit bureau report for seven years, while bankruptcies can stay for up to ten years.
Can I dispute errors on my credit bureau report?
Yes, you can file a free dispute online with the credit bureau that has the incorrect information, and they are legally required to investigate and remove inaccurate data within thirty days.