1. Credit Reports vs. Credit Scores — What’s the Difference?

• Credit Report = a complete history of your accounts, payment history, public records, inquiries, etc.
  
• Credit Score = a number derived from the information in your credit report, summarizing your credit risk.
  

Mortgage lenders look at both, but the report shows the details behind your score (so you can see what to fix).

2. Where to Get Your Credit Reports & Scores (Free & Trusted Options)

A. Free Annual Credit Reports (Official, No Cost)

By U.S. federal law, you’re entitled to one free credit report per year from each of the three major bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com.

As of recent rules, these free reports may be available weekly, not just annually, via that same site.

How to request:

• Visit AnnualCreditReport.com
  
• Or call 1-877-322-8228
  
• Or mail in the request form provided on the site
  

⚠️ Be careful of lookalike websites (e.g., “FreeCreditReportXYZ.com”) — they may charge hidden fees. AnnualCreditReport.com is the only government-mandated authorized site for free reports.

B. Free Scores & Monitoring Tools

• Credit card companies often provide free FICO or VantageScore estimates to cardholders.
• Services like Experian, TransUnion, or apps (e.g., Credit Karma) offer free credit score snapshots or monitoring.
• Be aware: many of these are “soft inquiry” versions and may not match exactly what your mortgage lender sees (but they help track trends).

3. Which Credit Score Do Mortgage Lenders Use?

This is one of the trickier parts — your “free score” might differ from what a lender sees. Here’s how it usually works:

• Most mortgage lenders use FICO scores (classic versions) when evaluating mortgage applications.
• Often, lenders look at three FICO scores — one from each bureau: FICO 2 (Experian), FICO 4 (TransUnion), and FICO 5 (Equifax) — and then use the middle score (the median) as the qualifying score.
• Because different credit bureaus may have slightly different data (e.g., a lender reports only to one bureau), your scores across bureaus can vary.

Also:

• Newer models are entering the mix. The FHFA (which oversees Fannie Mae / Freddie Mac) has validated newer scoring models, such as FICO 10T and VantageScore 4.0, for use in mortgage underwriting.
• But for now, classic FICO scores remain the most widely used in mortgage decisions.

Bottom line for your readers: Don’t stress if your “free score” is a little different — what matters is how good the data looks overall and whether there are errors or negative marks.

4. What to Look For in Your Credit Report & Score

When you pull your reports, here’s what to check carefully:

Mistakes here can mean accounts don’t match you	What to Look For	Why It Matters
Personal Info	Name, address, SSN, employer	These harm your “derogatory” status
Credit Accounts	Open/closed accounts, balances, credit limits, payment history	Late payments, high balances, or “charge-offs” are red flags
Credit Utilization	Ratio of balances to credit limits (especially credit cards)	High usage drags your score down
Negative Items	Collections, bankruptcies, foreclosures	Many hard pulls in a short time can hurt your profile
Inquiries	Hard vs soft inquiries	Late payments, high balances, or “charge-offs” are red flags
Public Records	Judgments, tax liens	Serious credit alarms

If you see something you don’t recognize or believe is incorrect, mark it for dispute (we’ll cover that below).

5. Disputing Errors — What to Do If You Find Mistakes

If your report contains errors (fraud, duplicate accounts, wrong balances, etc.), here’s a step-by-step plan:

1. Document everything — take screenshots or print the portion in error.
   
2. Submit a dispute with the credit bureau(s) showing the error. You can typically do this online, by mail, or by phone.
   
3. Provide supporting documentation — copies of statements, identity documents, etc.
   
4. Notify the creditor/data furnisher (where the error originated) to correct their records.
   
5. The bureau has 30 days under federal law to investigate and respond.
   
6. If the bureau confirms the error, it must correct, delete, or update the information and notify you.
   
7. If the dispute is denied, you can request a statement of dispute, provide additional information, or escalate the dispute through regulatory channels.
   

Under the Fair and Accurate Credit Transactions Act (FACTA) — an amendment to the Fair Credit Reporting Act — you have rights to dispute and get your credit information corrected.

6. When (and How Often) to Recheck Before Applying

• 3–4 months before applying — pull your credit and begin dispute/cleanup work.
  
• 1 month before applying — do a second check to catch new changes.
  
• Don’t check too close to closing — avoid new hard inquiries or sudden credit changes.
  
• Monitoring tools can help you watch for sudden negative changes (collections, new credit lines, etc.).
  

Checking your own credit (a soft inquiry) does not lower your credit score. That’s different from when a lender makes a “hard pull.”

7. Get Expert Help

If you’re not sure how to interpret your reports or need a game plan for improvement, reach out to a local lender or broker who regularly reviews credit.
A short consultation can often reveal which debts to tackle first — or whether your score is already good enough for pre-approval.

Final Thoughts

Checking your credit early helps you avoid surprises, save on interest, and buy your home with confidence.
It’s one of the most straightforward, most powerful steps you can take toward homeownership — and it costs nothing but a bit of time.

📥 Download My Free “Credit Prep Checklist”

Get a step-by-step printable guide to pulling, reviewing, and improving your credit before applying for a mortgage.

Download the Checklist → (link to your lead magnet or form)

💬 Ready for Personalized Help?

If you’re planning to buy your first home in Billings, Montana, and want an expert to help you interpret your credit report and get mortgage-ready — let’s talk!
Schedule a free consultation with me today

📚 Sources

1. Federal Trade Commission (FTC) – Free Credit Reports
2. Consumer Financial Protection Bureau (CFPB) – Credit Report Rights
3. Experian – Which Credit Scores Do Mortgage Lenders Use?
4. Bankrate – FICO Score for Mortgage Lenders
5. Federal Housing Finance Agency (FHFA) – Credit Score Model Updates
6. Wikipedia – Fair and Accurate Credit Transactions Act
7. Consumer.gov – Checking Your Credit Report