Your SlideShare is downloading. ×
Why are Credit Bureau's Important?
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Why are Credit Bureau's Important?


Published on

Learn Why Credit Bureau's are important to consumers.

Learn Why Credit Bureau's are important to consumers.

Published in: Real Estate
1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 2. Importance of Credit Bureaus Why is a credit check so important to obtain an accurate mortgage pre-approval?A client’s Beacon Scoretells a lender the riskfactor for that client anddetermines the lenderand rates a clientqualifies for. © 2013
  • 3. Importance of Credit Bureaus Beacon Scores RANGE300 600 910 Minimum Score to get good rates with less than 20% down payment © 2013
  • 4. Importance of Credit Bureaus Beacon Scores RANGE300 600 910 Scores less than 600 indicate the client will only be of interest to ‘B’ lenders …. Mortgage rates will increase as credit scores decrease. © 2013
  • 5. Importance of Credit Bureaus Beacon Scores RANGE300 600 910 Some ‘A’ lenders (banks, etc.) will make exceptions for scores under 600 if there is significant down payment and the real estate is excellent. © 2013
  • 6. Importance of Credit Bureaus Beacon Scores RANGE300 600 910 Mortgages for …  Self employed  No income verification deals  Rental properties … may have different credit score requirements © 2013
  • 7. Importance of Credit BureausCalculating Beacon Scores  Current Debts  Payment History  Type of Credit  Credit Enquiries  Age of Accounts © 2013
  • 8. Importance of Credit Bureaus Weighting Beacon ScoresPayment History 30% A single late payment can drop a score 20 points 30% Measures how little you currently owe VSCurrent Debts the amount you could owe if you maxed out your credit limitsType of Credit 10% Loans, credit cards and credit lines are assessed differentlyCredit Enquiries 10% Numerous unrelated inquiries over one year are a problem. 15% The longer a variety of accounts are open,Age of Accounts the better. Do NOT close credit lines or credit cards you no longer use. © 2013
  • 9. Importance of Credit BureausMortgage Broker vs Bank The big benefit to using a mortgage broker/agent instead of a bank is that only one bureau gets pulled by the broker and the report is good for multiple lenders. © 2013
  • 10. Importance of Credit Bureaus Mortgage ratings have recently been included in the credit bureau reporting. While there is no scoring yet, the reporting will show if there have been any late © 2013
  • 11. Importance of Credit Bureaus What lowers a Beacon Score Collection items Bankruptcies Judgments Payments over 30 days late Insufficient payments Using over 70% of a credit line or credit card limits Seeking too much unrelated credit in a short time (applying for 6 credit cards in the same month) © 2013
  • 12. Importance of Credit Bureaus What increases a Beacon Score Paying down credit card balances to under 70% Keeping balances lower than 70% Making full payments on time © 2013
  • 13. Importance of Credit BureausPre-approval starting point The credit bureau score is the starting point of a pre-approval for a mortgage. Eligibility for a specific interest rate and the down payment become apparent when the credit is reviewed. © 2013
  • 14. Importance of Credit Bureaus A credit check at the beginning of the process takes away any bad surprises at the end! © 2013