Personal Credit Reports

Written by Jessica Duquette
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Personal credit reports are one way financial institutions measure risk in regard to loans. Not just anyone can walk into the bank and qualify for a mortgage. Many factors play into the bank's decision.

Evaluating Income

First, the bank checks to see how much income you make. Whether you are applying for this home loan on your own, or you have a co-signer, such as a spouse, your income has an important influence on the outcome of your loan process. Once the income is calculated they begin to look at other factors.

Everyone has debt; from student loans and car payments to credit card bills and mortgages. The majority of consumers on this planet owe money to someone. If you are concerned about qualifying for a loan due to your debt, consider speaking to a professional.

Personal Credit Reports Establish Habits

Personal credit reports also calculate your ability to make payments on time. If you are untimely in paying off your credit card bill each month, a bank may be concerned about getting their mortgage payment on time. All your transactions are tracked and logged by consumer reporting agencies.

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