Get to know credit: The basics of your credit report

The credit bureaus - TransUnion, Equifax, and Experian - are the three main providers of FICO scoring for lenders.


A credit score helps to inform lenders of your credit worthiness, and how likely you are to pay back a loan. A higher credit score normally indicates a higher credit worthiness, and a lower credit score would normally indicate lower credit worthiness. Essentially, consumers are able to borrower more with a higher credit score. Or, consumer terms can reflect the value of their credit score.

Credit scores help lenders determine the amount of credit that is available to a person, as well as the terms of the credit. Higher credit score borrowers can obtain more favorable credit limits.

When you apply for a credit card, a home loan, auto loan, or any other type of credit based loan, lenders want to know the type of risk they will be taking.​

How The System Works

  1. Apply for credit: when you apply for new credit, the lender (or creditor) requests a copy of your financial history/credit report from TransUnion, Equifax, or Experian in order to assess your credit worthiness.

  2. The lender's assessment: the lender will use your credit report, your credit score, along with your payment history, income and debt to determine your credit worthiness. This may mean an approval or denial, and can also influence terms if you are approved.

  3. The lender's decision: upon approval for credit the lender will start to report your use to the credit bureaus. Your history of payment, and how much of your credit limit you use will impact your credit score.

  4. Updated credit profile: your credit utilization will be updated with the credit reporting companies as they receive new information from creditors and lenders. Your credit profile will be influenced by how well or poorly you utilize your credit. The next time you apply for a credit card or loan the process will happen all over again.

Your Credit Report

Don't worry, one of the fastest ways to improve credit is to remove negative items.

Your credit report is divided into six main categories. Every time there is movement on your credit report, one of these categories will be updated.

  1. Personal information - name, address, birth date, and social security number

  2. Place of employment

  3. Consumer statement with trade lines

  4. Account information

  5. Public records - bankruptcy, foreclosure, etc.

  6. Credit inquiries

We Can Help

Home Link Credit Services works with lenders that specialize in FHA home loans. An FHA home loan allows borrowers with credit scores as low as 500 have the opportunity for a loan. Home Link works with borrowers to boost their scores up to 580 to take advantage of the FHA 3.5% down payment program. Any money spent on services will be credited back by the home loan lender upon closing.

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