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# School’s out: Adult report card a credibility issue
- URL: https://www.smdp.com/schools-out-adult-report-card-a-credibility-issue/
- Published: 2006-08-16T15:00:00.000Z
- Updated: 2026-10-23T21:13:23.000Z
- Author: Guest Author
- Tags: Opinion, Santa Monica, #archive-import

*REAL ESTATE 101*

*By MIKE HEAYN*

When you were in school you were given grades to reflect how you did. As an adult, the grades have turned into numbers called FICO scores, which reflect how timely you make payments. FICO scores ultimately determine your credit worthiness. The single most important item needed to attain a competitive mortgage rate is good credit. Nothing plays a more important role in getting a residential loan than your credit score. As a synopsis of your credit history, your credit report and score are made up of several elements, coming from three different bureaus, and reflecting up to 10 years of your credit history.

The three credit bureaus, Experian, Equifax and Trans Union, collect information from creditors and compile it into a unified credit report. According to www.myfico.com, a credit report reflects the following information: ■ Identifying information such as your name, date of birth, social security number and address. ■ Trade lines, also known as accounts or debts. ■ Credit cards, real estate mortgages, car loans, cell phone bills, gym memberships, etc.

Inquiries show with whom you have applied for credit, who has pulled your credit, when it was pulled and how many times it was pulled.

Public record/collection is state and county courts information; overdue debt from collection agencies and bankruptcy, foreclosures, lawsuits, wage attachment, liens, judgments, etc.

Credit scores, generically called FICO scores, range from 350-850, with scores of over 730 considered near perfect credit. The three bureaus report at different rates and sometimes do not report the exact same information. Therefore, a median score is often used instead of a particular bureau’s score. For example, if you received a 680 from Experian, a 715 from Equifax, and a 700 from Trans Union, the Trans Union score of 700 would be used as your median credit score by a potential lender.

Credit reports and scores have allowed lenders to efficiently, effectively and fairly lend to many people by showing a quick synopsis of a person’s past credit history. With literally hundreds of home loans and lenders available it is no wonder why a quick synopsis of a person’s credit is needed. Many lenders can give pre-approvals over the phone after a credit report has been pulled. However, if you want a great rate you have to have a great credit score. Loans do exist for individuals with low credit scores, but the interest rates are generally higher.

Over time a credit score will forgive a person’s mistakes as long as that person makes an effort to make timely payments. That is why paying your bills on time is so crucial. One late payment or bankruptcy will bring your score down quickly, but it takes several months of “perfect” behavior to have it start increasing.

A credit report will not reflect race, color, religion, national origin, gender, marital status, current interest rates on existing accounts, any items reported as child/family support, certain types of inquires, any information not found in your credit report.

A credit score is calculated using the following breakdown according to www.myfico.com: ■ 35 percent reflects your payment history. That is why making one payment late will dramatically affect your credit score. ■ 30 percent reflects the amount of money owed on your accounts. If you go over your credit limits by 45 per-

*Originally published in the Santa Monica Daily Press print edition on August 16, 2006.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/081606.pdf?ref=smdp.com)