CHARACTER - Refers to how responsible you are about paying your bills. To determine character, a lender might review your credit report to see how well you have handled credit in the past.

CAPACITY - is your ability to pay a loan based on your money management skills, income, and financial position.

COLLATERAL - is security (such as your house) for the lender if you don't pay back the loan.


3. My mortgage loan does not appear on the credit report. Why?

Many lenders have not traditionally reported borrower's mortgage payment histories to credit bureaus. If your lender does not report your payment history, you can order its copy from your lender and have it mailed to you. Many lenders charge a nominal fee for this service.


4. How can I correct the errors on my credit report?

You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file. When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a "reasonable period of time," unless it believes the dispute is "frivolous or irrelevant." If the credit reporting agency cannot verify a disputed item, it must delete it. If your report contains erroneous information, the credit reporting agency must correct it. If an item is incomplete, the credit reporting agency must complete it.