Fundamentals of a credit report

Zack Childress REI quick cash system – Credit denotes the amount borrowed by the investor and it is the deciding factor whether he/she can borrow or not as the lender checks for the credit score. DC Fawcett Real Estate presents a reviews on the basic elements of a credit report in this article.

Credit report contains

• Loans that you have applied, borrowed past 7 years (there are few exceptions on the term )

• Existing loans and amount borrowed

• Monthly mortgage payment details

• Payment report: mentions the date of the payment, this will show whether you have paid on time or not.

• In case of bankrupt or foreclosure , those details are mentioned

• Default loans

There are different types of default

• Small: When a loan worth 500 dollars or less is repaid 6 months ago.

• Medium: When a loan worth 1000 dollars or less is borrowed from financial institution or organization and repaid.

• Large: When a loan worth 3000 dollars or less is borrowed and repaid.

• High: When the loan default exceeds 10,000 dollars or more, the lender segments the default into several small defaults.

• Unpaid defaults: These loans are yet to be repaid.

Zack Childress REI quick cash system

Credit bureaus collect the information of every investor which appears on the credit report. They are also called powerhouse of information. The source of information is through public records and databases. The information is distributed to the lenders when the investor approaches him for seeking a loan or whenever credit report is asked.  E.g. seller

Credit score refers to a number that is generated by a computer program, they generally check for particular patterns or red flags in your credit history. So after scrutinizing, your credit score is calculated and displayed.

The lender makes use of the credit score while you apply for a loan. Based on the credit score, the lender assigns the rate of interest. Zack Childress REI quick cash system

Credit scores are used widely for borrowing money, applying insurance, renting, at times during the employment. It is checked so as to know how responsible and punctual you are in your payments.

When you need utility services, the credit score is checked, if the score is low; large deposit is required.

Zack Childress REI quick cash system

Credit unions

In case your credit score is pretty bad, consider credit union as your first choice as they are willing to provide loans. Individual attention is given each investor.

Peer-to-peer lending services

They also provide loans for investors with low credit score.

Online lenders

Similarly, you can make use of online lenders who are not attached to any bank. Associating with such lenders increases the chance of getting loan.

Using collateral

It is yet another option where you need to pledge something of high value and borrow money. Mostly people pledge their land in case of collateral.

There are scammers who target these desperate borrowers, they pretend themselves as non-conforming lenders and get all the information from these investors. Later, the investor realizes he has been cheated.

Conclusion

To know more about credit scores and how to prevent from fraudsters, check out the articles in DC Fawcett virtual real estate investing club.