Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Little-Known Facts About Your Credit Report & Credit Reporting And What “They” Don’t Tell You

Home ownership is one of the keys to building wealth!  But, almost 98% of home buyers need a mortgage loan in order to buy a home for their family—or purchase rental property.  

The first thing and I mean the VERY FIRST THING, that lenders look at is your credit report.  Believe me when I say there is A LOT of bad information on the topic of credit scoring—or it could simply be that the person advising you doesn’t really know how complex the credit scoring issues can be.  

You need to know your options.  

This White Paper is just the tip of the iceberg.  

But I wrote this white paper to give you some little-known facts to help you understand your credit report and credit scores.  

So here it goes: 

What is a Credit Report? 

FACT:  The Federal Reserve Board (FRB) shares that Your Identity, Your Existing Credit, Your Public Records and Inquiries are all parts of a consumer credit report.  

Little-Known Fact: What they fail to mention is some things that are NOT reported that many people think ARE reported or affect their scores.  

ü   Your Household Income or Personal Income is NOT reported or used for scoring.  

ü   If you are married, your credit files are NOT merged together. (Only joint accounts  will show on both spouse’s credit reports.)  

ü   Even though your birthday is reported, your age cannot affect your score or chances of  approval. (One exception is the reverse mortgage which has an age requirement.) 


Where Can I get a Free Copy of My Credit Report?  

FACT:  They point out you can get one free copy of your credit report from each bureau every 12 months at     

Little-Known Fact:    You can get a copy of your credit report for FREE at the above website but “Now here’s a secret that may save you some money. Instead of using a credit monitoring service (that costs you money), just log onto the free site and pull one bureau (Experian, TransUnion, Equifax) every 4 months!” 


Does the Credit Bureau Decide Whether To Grant Me Credit?

FACT:  Another great “truism” is that the credit bureaus DON’T make any credit decisions. 

Little-Known Fact: The creditor uses the bureaus’ information along with other information (like your income) to determine whether or not to extend credit to you. Studies have shown that up to 79% of credit reports have errors! So even though the credit bureaus generate a score, it doesn’t mean it’s accurate. 

How Can I Stop the Unsolicited Credit Card Offers?  

FACT:  You can OPT-OUT from creditors’ marketing lists by going to  and completing the information. You can choose to opt out for 5 years or permanently.  To opt-out permanently you will need to mail in the documents requested off the website. This will cut down on your unsolicited mail.  (Don’t worry, if you change your mind you can turn it back on again!) 

Little-Know Fact :  OPT-OUT before you order your free credit report.  The bureaus are in the business of selling (yes, I said selling) your information and making money off of it!  


What is a Credit Score?  

And how is My Credit Score Calculated? 

FACT:  The FRB states that your score is “a number based on your information”.  True, but there is more. 

Little-Known Fact:  The FICO algorithms (FICO 70% of the credit scoring market) actually calculate the odds of you having a 90-day late in a 24 month period on a loan obligation. I know it’s odd isn’t it? That’s why a 90-day late or more has such a negative impact on your scores!  

Another Little-Known Fact:  This is a KEY POINT. Your credit score is like a “snapshot in time”.  The score is calculated at that precise moment in time that you order your report.  So if you can change an inaccurate or un-validated item (i.e. repair, delete or remove) then your score will change immediately!

Still Another Little-Known Fact: There are two types of scores:  FICO (which is used when you apply for a mortgage) and Vantage Score which claims to have higher consumer scores. (They are currently used more in consumer loans.)  

 What If I Have Errors On My Credit Report?  

 FACT:  You can dispute credit reporting errors yourself.  

 Seriously you can repair your own credit.  In fact the FTC (Federal Trade Commission) requires that credit repair organizations have to tell the clients that in their contracts.  

 Little-Known Fact:  Just like you would not perform surgery on yourself, you might need the help of an outside attorney or legitimate credit restoration organization to help you if you get stuck.  

 You have legal rights under the Fair Credit Reporting Act that your information be 100% accurate and 100% validated that it’s yours. If not they have to permanently delete it. It’s easy to say but usually difficult to get the credit bureaus and creditors to perform due diligence. 

It’s especially critical if you have had a divorce, bankruptcy, foreclosure, short sale or medical emergency that’s caused negative or erroneous information to appear on your report.  

So, what should you do next? 

Order your credit report using the link I gave you above. 

 If for some reason your score is low or you cannot be approved for a mortgage loan because of your credit score, I can show you how you can get those credit scores increased!   

It may take some time. But once you get to that magic credit score number, not only will it help you get a better interest rate when buying a home, you’ll get better interest rates on your credit cards and auto loans, too. 

So, the question that people continue to ask me is: “Are credit repair companies legal?” 

If credit repair wasn’t legal they would not have passed a law governing Credit Repair Organizations! It’s called Credit Repair Organizations Act (CROA). It was passed to govern and protect the consumer. 

Here’s the website link if you want to check it out. 

So, what’s in it for you?  

Not many other mortgage loan officers know the information that I shared with you in this white paper. 

Your need to increase your credit scores, combined with my knowledge, will help you increase your chances of obtaining a mortgage, dramatically. 

Most other mortgage companies want to cherry-pick the easy deals. 

Not me, because I have more options for you than they do. 

Well, you probably have some questions.  

Lots of them. 

Please give me a call while the info from this white paper is fresh on your mind and you’re excited about increasing your credit – in the long-run, saving you money.  

Even if you are skeptical, which is only natural, a phone call can’t hurt. 

Hey, the WORST you could do is spend a few minutes learning. 

The BEST you can do is have peace of mind and save yourself thousands of dollars.  

     Call Me (916) 412-3313 

I look forward to hearing from you. 


Greg Cowart  


P.S. If you don’t want to order your own credit report thru, call me and I’ll order one for you…free!

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