Are Credit Reporting Services Accurate For Getting A Mortgage?

No, credit reporting service companies want you to feel like you’re in control of your credit score. Some services even allow you to run statistical tests to see what actions you can take to improve your credit score, but these are by no means a guarantee especially when it comes to obtaining a mortgage.

Let’s say you have a credit score of 610, through a credit reporting company like Experian for example. When you apply for a mortgage, the mortgage lender gets one score per credit bureau. They pull what’s called a tri-merge credit report, comprising all three credit scores, and they use the middle credit score for loan qualifying. Let’s say you’re middle credit score is 600, your high credit score is 609 and your low credit score is 580. Pretty big disparity between the credit scores right?

What Consumers Must Know Regarding Credit Report Subscription Services

Credit reporting subscription services are ideal for  keep a running tally on your credit score. They are by no means, an accurate depiction of what your true credit is like like a financial services credit.

Yes a financial services credit report a lender uses in conjunction with originating a loan is by far more complete, more accurate and more up to date than any other credit report or credit reporting service. Expect a disparity between the lender’s credit report and your credit reporting services subscription, every time.

Are credit reporting company subscriptions worth the cost? The answer is yes if you’re trying to stay up to date on one or more credit bureaus and you’re perhaps in the process of building credit. However, if you’re looking for a mortgage, a credit subscription service is not the benchmark credit credit standard.

Need to check your credit score? Curious about buying a home? Get a free rate quote today!

Posted in:

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

Illustration of an orange two-story house next to a green dollar sign, a blue calculator, and stacked coins, with bold text above reading “Income is the key to home affordability,” symbolizing the role of income in determining home buying power.

Why Income Drives Buying Power More Than Credit or Cash

When it comes to buying a home, most people focus on credit scores and down…

Single-story beige suburban home in Sonoma County with a 'For Sale' sign in the front yard, neatly landscaped lawn and bushes, under a clear blue sky

Why days on market (DOM) matters for Sonoma County home buyers

If you’re on the hunt for a home in Sonoma County, you might have noticed…

A hopeful first-time homebuyer or couple sitting with a loan officer at a desk, looking at documents or a laptop, with a house in the background or visible on screen—professional and optimistic tone.

Can you buy a house with a 500 credit score?

Can You Buy a House with a 500 Credit Score? Yes—Here’s How Buying a home…

Real estate investor reviewing DSCR loan documents at a desk with a laptop and house model.

Outside-the-Box Mortgage Solutions: DSCR, Bank Statement, and Non-QM Loans Explained

Not every borrower fits neatly into a conventional mortgage box. In fact, as homeownership has…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!