If you’re buying a loft or condo for sale in Little Tokyo, you’ll probably need to get a mortgage loan – but whether you’re able to or not depends largely on your credit score.
Usually, lenders check your credit score through the three main credit bureaus: Equifax, TransUnion and Experian. They also look at your FICO score.
What Do Equifax, TransUnion and Experian Do?
The three main credit reporting agencies put together details about your credit history so lenders and creditors can see if you’re a big risk. Each of the agencies is a private, for-profit company – they have nothing to do with the U.S. government. They’ve built reporting relationships with banks, lenders and other financial institutions so they can put your history into a credit report.
They collect information about your existing credit accounts, your payment history and more.
Here’s a breakdown of your credit score.
Once each agency collects this information, they compile it into a report and sell it back to the lenders.
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How Long Do Items Stay On My Credit Report?
Different items stay on your credit report for different lengths of time. Here’s a run-down:
- Bankruptcy: 10 years from the date of filing for Chapter 7 and 7 years for Chapter 13
- Charge-offs: 7 years
- Closed accounts: 7 years if it was paid late, but forever if it was always on time.
- Collections: 7 years from the date of the last late payment
- Inquiries: 2 years
- Judgments: 7 years from the filing date if paid, but longer if unpaid
- Late payments: 7 years from the date of the last late payment
- Tax liens: 7 years from the date it’s paid, but indefinitely if unpaid
Are You Buying a Loft or Condo in Little Tokyo?
If you’re thinking about buying a condo in Los Angeles or a nearby community, call us at 213-254-7626 or contact us online. While you’re here, check out our: