Can credit exist somewhere other then in your credit report?

Question

I have the following credit scores.

BEACON 5.0 733

EMPIRICA 950 706

FAIR ISAAC SCORE 2 738

I am buying a house and I was told by my banker that there wouldn't be any issues when she saw my credit report. Everything was going good on tell today. I got a letter in the mail saying that I was denied because “Delinquent Past or Present Credit Obligations with Others”! First off I have no bad things on my credit report at all. I am wondering if it is possible that they got the information somewhere other then my credit report? If so were?

Answer 1

The first thing I will do is explain to you were credit is derived from, and then I will tell you why it is useful information to banks.  Credit is derived from any past payment obligations you have had to creditors.  Creditors may be the cable company, your cell phone, loans, your credit card etc.  If it so happens that you are prone to making late payments on loans, or cell phone bills, or your credit cards then your credit report will show you as a risky person to invest with.

       So, how does this tie into you?  If you can recall any time in your past when you have defaulted on a payment, or declared bankruptcy, or were on welfare, then you can be p retty sure that this is why they have stated you have past or present credit obligations with others.  Meaning, you owe some people money and your current salary does not show that you are able to take on another credit obligation.

Hope this was helpful.  Good Luck with your mortgage.

Answer 2

The letter you got should have said what credit reporting agency they got the information from.  You need to contact wherever they got that report from and get a copy of whatever they have.  If they have incorrect information, then you have to dispute it.

Answer 3

Not all credit is reported to credit reporting agencies, however, make sure you have checked your credit record at all three reporting agencies (since you have been turned down, you are entitled to a free report even if you have gotten your free report in the past 12 months).

Also, they may have checked with a landlord, utility or similar entity - these types usually don't report to credit reporting agencies.  If possible, see if you can call the mortgage lender and get an idea what the delinquency was - make sure it is yours and not someone else's/