If you have a small amount of traditional credit information, such as credit cards and loans, you have what the industry refers to as a "thin" credit file. In the past, this would have prevented you from getting a loan, even if you paid all your bills on time and had a substantial amount of money in savings. Today, there are more options for people who do not have traditional credit files, so they too can enjoy all the benefits of homeownership.
These are the 3 commonly used National Credit Bureaus:
Equifax Information Service Center – http://www.equifax.com/
P.O. Box 740241, Atlanta, GA 30374-0241
Trans Union Corporation – http://www.tuc.com/
Post Office Box 1000, Chester, PA 19022
Experian Information Solutions, Inc. – http://www.experian.com/
P.O. Box 2002, Allen, TX, 75013
You are entitled to a free copy of your credit report each year.
A "no credit file" occurs when you have no traditional credit information such as credit cards or loans. Traditionally, a customer with no credit would be put into the same category as someone with bad credit – even if they paid their bills on time. The result is higher interest rates or no mortgage loan offers.
Fortunately, all of this is changing. There are now options available for customers with no credit, provided they have a good history of bill payment and a steady income.
The banking industry is starting to look beyond traditional credit reports and scores as the primary indicators of consumer credit worthiness. The industry is realizing that just because a consumer does not have a complete traditional credit history does not mean they are a credit risk. For example, many people do not believe in debt, they make payments on time and they have a decent amount of money in a savings account.
In the past, it was difficult for lenders to ascertain the credit risk for these consumers. However, that has all changed. Innovative new products, such as the Anthem Report from First American CREDCO, judge a person's credit worthiness by looking at alternative payment histories such as rent, utility and insurance payments. By examining these payment histories, lenders can accurately determine the relative credit risk for a consumer. As a result, many consumers with strong alternative payment histories can now qualify for the same loans as consumers with traditional credit histories and scores.
The Anthem Lender Directory is now online and searchable by state.
For more information about understanding your credit, FICO scores, Anthem scoring, and how this all affects your potential for homeownership, please visit our CREDCO website at www.Credco.com. You can also call me for more detailed information.