CREDIT REPORT

CTX uses a credit report to assess your willingness and financial ability to make the required payment on your home. Three national credit bureaus maintain reports on your credit, and creditors (like others who have lent you money) and companies with which you maintain an open account report to these bureaus about how well you pay your accounts with them. Each of these accounts is called a ‘trade line.’

Maintaining Your Credit: Each time you apply for new credit and the creditor looks at your credit report, the credit bureau that issued the report will record an ‘inquiry’ on your account to show that the creditor has accessed your credit report. Too many inquiries on your report can hurt your credit rating, which can also be expressed as a number called a ‘credit score.’

Correcting Errors on Your Credit Report: If there are incorrect items on your credit report, we can help you get them removed. If you dispute an entry on your credit report, the credit bureau has an obligation to investigate whether the entry is correct. If it finds that it cannot verify the entry, it must remove it.

Explaining Derogatory Items on Your Credit Report: There may be negative or ‘derogatory’ items on your report, such as late payments or accounts that were closed while still unpaid. Sometimes we can help you with explanation letters to show why they should not count against you in the underwriting process, such as late payments because of an unexpected job loss in the past, unexpected medical bills, or being called up for military duty.

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