Introduction
From time to time, we are familiar with hearing about credit bureaus. We will take a dive into what credit bureaus are all about. Also, we get to know about Rocket Mortgage and the services they render. What Credit Bureau does Rocket Mortgage use? – let’s know.
What is a Credit Bureau?
Credit Bureau is known as an organization meant for receiving and making research on credit information. These acquired credit information are collected from individuals for lenders or the government. After which, the credit information is put on sale to creditors for a stipulated amount of money. The credit information sold to the creditors allows them to evaluate the chance of granting the company or individual loans. It also determines if a loan payment duration should be extended or not.
Credit Scores: Also referred to as Credit Reporting Agencies(CRAs), credit bureaus allocate credit scores to companies or individuals. Credit scores are used to foretell the qualification for credit and the necessary conditions for the credit to be granted. They calculate the possible risks based on the credit history given. These credit scores are then delivered to financial institutions that lend out money.
Use of Credit Bureaus: Establishments such as lending institutions, banks, and credit card allocators use credit bureaus to gather information on whoever is coming to borrow money. This is to have knowledge of their financial situations such as the history of borrowing, bills payments, or cases of possible bankruptcy.
The information required are personal information for identification purposes, public records, inquiries made, tax payments, or loan and credit reports.
Which Credit bureau does Rocket Mortgage use?
Rocket Mortgage uses TransUnion credit reporting agency for checking the credit scores of potential borrowers. Trans Union is one of the three main credit bureaus used by lending institutions.
To discover and monitor credit scores on Rocket Mortgage, check on the Rocket Homes website to get TransUnion credit reports.
In addition, to qualify for a loan from Rocket Mortgage, a credit score of at least 580 is required.
What does Rocket Mortgage do?
Rocket Mortgage is a company that deals in mortgages and finances. A large, widely known mortgage lender in the U.S, Rocket Mortgage provides mortgage loan services to individuals.
Rocket Mortgage collects information about people, their finances, their homes, and finance reports. These are used to give the borrowers a range of available loans and interest rates. It is the responsibility of Rocket Mortgage to put the borrowers through the mortgage process from the start to the finish point. They also assist in payment management.
Rocket Mortgage are mortgage lenders that render reliable and quick online service to their service customers.
Rocket Mortgage offers various loan options for buying homes and refinancing.
Types of Credit bureau
There are three main types of credit bureaus. They are:
- TransUnion
TransUnion is one of the three reliable credit bureaus. It is an American credit reporting agency that deals in collecting credit reports and offering credit protection. Trans Union is a large agency for credit analysis and predictions for their consumers to make good financial decisions. They offer services in over 200 countries worldwide with a large number of trusted employees. You can check your credit score and other services on the TransUnion official website.
- Equifax
Equifax is a large credit reporting agency. It allows its users to access credit scores, protect credit information from frauds. However, Equifax does not determine a person’s eligibility for loans. It is used to estimate the credit position. Equifax credit scores can be calculated on all three credit bureaus available. Equifax is absolutely free for the first month of use. After which, a designated amount is paid for subscription.
- Experian
Experian offers credit monitoring services that help the borrowers track and repair their credit scores. Credit reports on Experian are updated on a monthly basis.
Another service of Experian is to sell marketing strategies for decision-making to companies and establishments.
Experian services are both paid and free depending on the user’s choice.
Factors that Boost credit scores
Listed below are what improves credit scores and gives borrowers higher advantage, they are:
- The history of loans and loan repayments. This is very important for determining the credit score.
- How long it takes to repay loans.
- How long the individual’s credit history is. The longer the credit history, the higher the score.
- Different types of loans acquired.
- The number of credit accounts owned by the individual.
Conclusion
Thus, we have seen in this article that Rocket Mortgage uses credit bureaus, with the most common one used being TransUnion. Additional relevant information and details have also been discussed in the article.
FAQs
Does Rocket Mortgage use a credit bureau? What is the credit bureau used by Rocket Mortgage?
Yes. Rocket Mortgage requires a credit bureau for collating credit information of possible borrowers.
TransUnion is used by the company. It is a reliable and popularly known credit bureau for collating credit information to determine credit scores.
How many credit bureaus can be used by Rocket Mortgage?
Rocket Mortgage is permitted to request credit scores from more than one credit bureau. However, Rocket Mortgage makes use of TransUnion.
