In a previous blog, we discussed how your employer can use your credit report, but the myth that they can check your credit score is still pervasive. The reason this myth won’t die is because people still tend to use the terms credit score and credit report interchangeably. We’re here to clear up the difference.
Your credit report is a document recording your credit history and includes:
If you have good credit, are debt free, and decide to close your lines of credit, you’re at risk of being deleted from credit reporting systems after 10 years, which means you’ll no longer have a credit history. Without a credit history, it’ll be difficult for you to take out a loan. So keep at least one line of credit open that you use occasionally and pay off each month to keep your record in the system.
Only you can see your credit report with the exception of:
These entities can view your credit report, but only if they have permissible purpose. For example, for underwriting insurance or to determine if they can give you a loan. Employers can also see your credit report if they have your permission.
Unlike a credit report, which can exist without a credit score, your credit score cannot exist without your credit report because it’s based on the information present in it. Credit score is a number calculated by your:
These numbers then come together to form your credit score, which typically have a score range of 300-850, which measures your risk to lenders.
If you have a good credit score, you will be more likely to get a Kansas City home loan with lower rates. If your credit score is less than ideal, you will be more unlikely to get a Kansas City loan because lenders will see you as more of a risk. You can improve your credit by:
Who can see your credit score is the same as your credit report with the exception of your employer. If you find that your credit report and credit score was accessed without your permission, say, by an employer, they could have violated the Fair Credit Reporting Act (FCRA). In this situation, you need to seek legal counsel immediately.
The Covid-19 pandemic brought many changes to life around the world. In the U.S., one of those changes was an increase in self-employment as many companies downsized, moved to remote work and enacted other significant changes to their structures and work models. This led to many employees taking stock of their work lives, which led […]
The first question many homebuyers have when deciding to buy a new home is: how large of a mortgage can I afford? The answer to this question will impact the type of home, location, and, of course, the price of a home you may purchase. The answer begins with gross monthly income A buyer’s gross […]
It’s no secret that the housing market is still red-hot. For example, homes in the St. Louis area sold on average in seven days during the summer of 2022. This summer the average time on-market before sale is eight days. And while the average time to sell a house in the St. Louis market is […]
