Credit Repair Kit
Importance of Your Credit Rating
Good credit is more important than money in the bank. When you are ready to buy a house, a second
home, an investment property or refinance your existing home, your credit report carries a lot of weight with
mortgage lenders. It is not based on your character, your intentions, or your circumstances. There is
nothing personal about it. It is just a piece of paper representing you and your past. If your credit report is
incorrect, inaccurate or misleading, getting a mortgage to buy a home may be harder to get.
Since your previous credit repayment performance reflects your attitude toward credit obligations,
determining your credit worthiness is one of the most important components of the loan process. We
therefore review your credit report to establish your credit history by examining your performance with
mortgage payments as well as with revolving and installment debt such as department store and bank
credit cards and car loans.
Payments received 30 days past the due date are usually recorded as late in your credit report. However,
we are generally not concerned with isolated, minor slow payments unless an ongoing pattern is
established. Credit reports also include public records such as collections, repossessions, foreclosures and
bankruptcies. Though these items may indicate past credit problems there are often valid reasons, and a
well-established pattern of excellent recent credit will be taken into consideration. Lenders will typically
allow one or two late mortgage payments or public records.
Credit rating is a system used by some creditors to determine whether to give you a loan or credit card.
The creditor may examine your past credit history to evaluate how promptly you pay your bills and look
at other factors as well, such as the amount of your income, whether you own a home, and how many
years you have worked at your job. A credit rating system awards points for each factor that the creditor