Is it necessary for banks to run three credit reports when applying for a mortgage?

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Why Do Banks Run Three Credit Reports


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Shouldn't one credit report be enough? You would think so; your credit report should tell the whole story, detailing every aspect of your history as a borrower. Unfortunately, real life does not work that way.

While credit reporting agencies make every effort to report your credit history comprehensively, sometimes there are gaps. Some lenders do not report to every agency, resulting in an incomplete view of your credit history. This happens all the time.

Banks understand that different credit reporting agencies receive different information. To create an accurate view of your credit history, the banks pull reports from the three major reporting agencies in order to see the differences. Generally, the bank will take the middle credit score. If your three reports show 580, 610 and 690, for example, the bank will use the 610 score to evaluate your mortgage application. They take the middle score, not the average.

When you apply for a mortgage, the lender will check your credit scores for you and tell you the results. But, it can be a good idea to have your own credit report run before you start the process of looking for a home. It will give you an idea of what your credit is from the start, which can help you throughout the process. Ask your bank to give you a copy; you are entitled to one free credit report every year; take advantage of it!