Why Your Mortgage Isn't Showing Up on Your Credit Report
Paying your mortgage is a great way to boost your credit score. It shows lenders that you can borrow a large sum of money and pay it back on time.
The only problem is, sometimes you won't see these payments reflected on your credit report. That can be frustrating if you were counting on those monthly payments to boost your overall standing with the major credit bureaus.
A missing loan can happen for a number of reasons—and luckily, most of them can be fixed with a few simple phone calls. Others, however, can be a little trickier to resolve.
Here are some reasons why your mortgage may not be showing up on your credit report, and when you can and can’t fix it.
There's a reporting delay
One of the most common reasons you don't yet see your mortgage on your credit report is because there's been a simple reporting delay. For most people, it can take anywhere from 30 to 90 days for a new or refinanced loan to appear. If you bought a home during the spring or summer—the busy season for real estate—you may have to wait a few weeks longer.
If you suspect this is the case, you typically won't need to take any action. If after a month or two you still don't see your loan, contact your lender and the credit bureau to ensure they have all the pertinent details of your loan—and that the information is correct.
Your mortgage is through a private lender
There are a lot of lenders out there, and yours may have different reporting practices than others. Some small and private lenders, for example, may only report delinquent accounts, not accounts in good standing. Others may only report their business to one major credit bureau instead of all three.
If this is the case, you can’t force the lender to report. And, unfortunately, you can’t report it yourself either. You can, however, keep careful track of all your loan payment information, then furnish your records to lenders when you apply for other loans. Future lenders will vary in how they handle these self-furnished reports, and some won’t consider them at all. This is why it's important to maintain good spending habits outside of your mortgage.
You opted for nontraditional financing
Similarly, nontraditional financing could also prevent your home loan from appearing on a credit report. Rent-to-own, buying from an acquaintance or certain other financing options are not necessarily a bad option, but they don't always fit neatly into a credit score. When in doubt, talk to your lender or preferred financial institution about how to proceed and how to evaluate what is in your best interest.
Your loan servicer changed
Over the life of your mortgage, your loan will likely be transferred to a different servicer—possibly several. This is very common and typically isn't something to worry about as you'll be notified each time the servicer changes. This could, however, result in the temporary disappearance of your loan from your credit report. If after 60 or so days, you still don't see your loan, reach out to your lender and the credit bureaus.
If possible, you should avoid refinancing your mortgage during a servicer transfer. The missing mortgage—even though it's temporary—could result in a lower credit score and higher interest rate.
Your name isn't on the mortgage
If you're making mortgage payments but aren't included on the official mortgage, i.e. you're sharing the payment with a friend or spouse, you won't see those payments reflected on your credit report. For some, this arrangement is practical. But if you want credit for the payments, you'll need to add your name to the mortgage. Discuss your options with both the primary mortgage owner and your lender.
You recently filed for bankruptcy
Certain types of bankruptcy can result in a mortgage being wiped from your credit report. Filing for Chapter 7 bankruptcy, for example, will wipe out all of your debt. Unless you sign a reaffirmation agreement, your mortgage will likely fall off your credit report.
If this happens to you, you can walk away from the loan, if necessary. Or, you can choose to remain in your home—as long as you stay current on the mortgage. When you pay off the mortgage, the home is yours. Those payments, however, will not help your credit score.
Always speak to a financial advisor before declaring bankruptcy.
Your account is too old
If you have an older mortgage, you may have noticed it drop off of your credit report. This could be because the credit reporting time limit has passed or the credit bureau’s internal reporting time limit for that type of account has expired.
Typically, though, a mortgage will remain on your report for up to 10 years after you pay it off.
There was an error made somewhere along the way
To err is human, right? It’s possible that a clerical mistake—such as an error on the forms you filled out to apply for the mortgage—is causing it to be absent from your credit report.
If you received a loan from a major lending company and think this applies to your report, call your lender and ensure they have all the correct information. Start by double checking they have the correct name, Social Security number, address, etc.
You're entitled to one free credit check from each of the three major bureaus every year. Take advantage of this and review your credit report for errors.
If you want help applying for a new mortgage, or refinancing an existing one, contact Mountain America Credit Union. Our friendly, knowledgeable staff will help you find the best rates and terms for your unique needs. Meet with your own financial advisor to explore your options today.
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