Your mortgage is generally reported to the major credit-reporting agencies each month, just like any other loan or line of credit. And, so long as you're making all of your payments on time, its presence will help you build credit and secure affordable financing down the road.
There is an outside chance, however, that your mortgage might not make it onto your credit report. Here are two reasons why.
1. Your loan is in someone else's name
When you apply for a mortgage, your name and Social Security number are tied to that loan for its term or until you sell or refinance the property. Once the loan is made, your lender is not permitted to arbitrarily change its terms by adding or removing a borrower.
Take a married couple, for example. Let's say, they put their mortgage in the wife's name only because she had a better credit score or income at the time of the application. Were she to pass away, the husband would not simply start to get credit for any payments they made, given he wasn't on the original mortgage.
http://flip.it/g5k6t
No comments:
Post a Comment