How credit bureaus support lenders?
Dc Fawcett Real Estate talks about how credit bureaus work and how the information serves the lenders and how fraudsters misuse the piece of information in this article.
As we know, credit bureaus are powerhouse of information about millions of investors which is sold to the lenders and interested borrowers. The lenders generally look the investor’s borrowing history before lending them loan; it is to check whether the investor has made any payment default in the past. The credit bureaus help out in providing the information. The credit score is the outcome of your borrowing history. The detailed description of the raw data forms the credit report. They are not concerned about the loan approval. The information is gathered from various sources but they make sure it is authentic.
The investors who have borrowed in the past would be quite popular in the credit bureaus as the lenders would have passed the information about the loan. Try to work with such lenders so that you are familiar in credit bureaus and applying for a loan will be easier.
Credit reporting system is managed by
- credit bureaus
- financial companies
Personal information is the only way to distinguish the different investors; it is also one of the ways to stop identity theft scam. The lenders will send e-mails if they are any attractive offers to these investors and make them as prospective buyers.
The investor’s name, address, Social Security Number, date of birth, residential address, employment details of the investor (it will have a history which comprises of all the information where you are working and where you have worked in the past as well). Scammers misuse this information by pretending themselves as lenders and get the details from credit bureaus.
The public records are collected through the credit reporting companies and judgement is based on the investor’s financial overview. It checks whether investor have been through any situations like bankruptcy, tax liens, foreclosure. They also record how many people have enquired about your credit score.
Investors can browse DC Fawcett Virtual real estate investing club to learn some strategies on how to prevent from identity theft scam.
The most important information is trade lines which are otherwise called as loan information. An elaborate description of the loan is obtained like the type of the loan, name of the creditor, date and time, balance amount, outstanding dues, deadlines.
How the credit score is calculated?
Investor’s payment history, the debt paid and unpaid, how long credit accounts are maintained, what are the other accounts managed by him, inquiries.
What do the credit bureaus track but will not reveal?
From the lender’s perspective, those who change their jobs and residence often are due to payment defaults and states that they are economically unstable. If the investor doesn’t want to reveal the loan details, the lender restrains from informing the credit bureau.
Thus credit bureaus help the lenders in the above mentioned way and every investor should know the importance of credit report.