One of the advantages of having a mortgage is the boost it can give your credit score. Timely mortgage payments can greatly help your score. But, how soon will your mortgage show up on your credit report? It depends on several factors.
In general, new mortgages take between 30 and 60 days from the funding date to get on your credit report. It takes time for the lender to report the new loan to the credit bureaus and for the bureaus to process the information. If you buy or refinance your home during a busy time of year, it could take even longer than this.
But, some mortgages may never show up on your credit report. Here are a few reasons why.
Unless you get your loan from a commercial bank, you won’t see your mortgage reporting on your credit history. If you secured financing from the seller or other private party, they handle the payments themselves. Private investors typically do not report your loan payments to any credit bureaus. Not only is it time-consuming for lenders, but it is also costly. It’s an expense most owners or private investors will not undertake.
Not every lender reports to the credit bureaus. It’s not mandatory, so each lender operates on their own terms. Small lenders may not report the mortgage for much the same reason a private investor will not report. It’s time-consuming and costly.
Some small lenders only report negative accounts to the credit bureaus. For example, if you make your payment late 2 months in a row, a non-reporting lender may report your defaulted payments. This puts a mark on your credit history and lets other lenders know that you are not a good risk. Yet other small lenders choose to report to a single credit bureau, rather than all three of them. Again, it saves time and money on their end.
Sometimes mistakes happen, even with mortgages. If your lender inputs your name or social security number incorrectly, your mortgage will not report on your credit report. It could end up on someone else’s though!
Before you close on your loan, make sure all identifying information is accurate. The credit bureaus rely on the credible information in order to report the account for the right person. If you notice your mortgage isn’t reporting, you may want to look into the accuracy of your information to make sure it’s not a clerical error keeping it off your credit report.
In general, you can expect your mortgage to start reporting on your credit report within a matter of months. If you notice it has been 4 or more months, you can inquire with your lender. You may find out that they just don’t report to the bureaus. There’s nothing you can do about that. You can keep a record of your payments yourself, though. Keep your canceled checks and statements to show future lenders your ability to make your mortgage payments on time.