What you should know about tri-merge credit reports

With three major credit-reporting bureaus each calculating a credit score that may affect whether you can buy a home, you may have some questions. While each bureau issues its own credit history and report, many lenders review a credit report known as a tri-merge report. Understanding what a tri-merge report is and what lenders look for in it can help you improve your chances of getting a mortgage and buying a home.

What is a tri-merge credit report?

A tri-merge credit report – also known as a three-bureau report – combines information from Equifax®, Experian®, and TransUnion® into a single report. This gives potential lenders the most comprehensive view of your creditworthiness.

How is a tri-merge credit report made?

A tri-merge credit report pulls information from the three major credit bureaus and combines them into a single, comprehensive document.

The tri-merge system takes the data from each bureau, identifies matching accounts across all three reports, and presents them in a standardized format that allows lenders to see any discrepancies or variations in how your credit history appears across the different reporting agencies.

Mortgage lenders usually request a tri-merge credit report to ensure they’re not missing crucial information about your credit history that might appear on only one or two reports.

The tri-merge format also allows lenders to use the middle credit rating from the three bureaus, which provides a more balanced assessment than a single figure that might be affected by reporting differences.

What’s included in a tri-merge credit report?

As you might expect, your tri-merge credit report contains details about your finances, including:

• Active debts, such as: Child support and alimony payments, mortgages, student loans, auto loans, personal loans
• Collections
• Credit mix
• Age of credit accounts
• Open credit card accounts and outstanding balances
• Any payments that were made 30 days or more beyond the due date, going back seven years
• Foreclosure records from the past seven years
• Bankruptcy filings dating back up to 10 years

Red flags in these areas make lenders wary because they mean you might have some issues handling your finances.

What effect does your tri-merge credit report have on your loan?

When you apply for a mortgage, the lender’s underwriters will review your financial history and decide whether to approve you for the loan based on how likely you are to repay the loan plus interest.

This is where your tri-merge credit report becomes crucial — lenders use it to verify you have a solid track record of paying bills on time and managing credit responsibly.

Here’s how your tri-merge report directly impacts your loan application:

• Loan approval odds: Each lender has their own credit requirements for borrowers, with some having more risk tolerance than others. They’ll use your tri-merge credit report information, as well as your FICO^® credit score, to decide whether they’re comfortable lending money to you.
• Interest rate determination: Your credit history helps lenders set your loan’s interest rate. A spotty credit history means higher interest rates, which translates to higher monthly payments.
• Rate qualification: Conversely, a clean report paired with a high credit score will likely earn you a lower interest rate.

Can I get a copy of my tri-merge credit report?

Tri-merge credit reports are available only to mortgage and lending professionals. However, you can order a credit report from each of the major credit bureaus, and you can get them for free from www.AnnualCreditReport.com.

While reading your credit report may not sound like the most thrilling way to spend your time, it can help you financially down the road. For starters, it provides insight into what type of mortgage you might qualify for. If your reports show low account balances and clean records, you could be eligible for a mortgage with lower interest rates.

Keep in mind that these complimentary scores may not be the ones lenders use for lending decisions. Free scores still provide a helpful indication of your credit strength, as they typically don’t vary dramatically from your official FICO^® score.

FAQ

Here are answers to common questions about tri-merge credit reports.

What happens if my credit scores are different across the three bureaus?

Your credit scores may vary slightly between Equifax®, Experian®, and TransUnion®. Mortgage lenders typically use the middle score from your tri-merge report for qualification purposes.

How much does a tri-merge credit report cost?

You can’t get a tri-merge report, per se, but you can get free credit reports from the three major credit bureaus.

How far in advance should I check my credit before applying for a mortgage?

It’s wise to review your credit reports at least three months before you plan to apply for a mortgage. This timeline provides you with sufficient opportunity to dispute any errors, pay down balances, or address other issues that may improve your creditworthiness.

The bottom line: Review your tri-merge credit report before applying

Understanding tri-merge credit reports is important for mortgage applicants. These comprehensive reports provide lenders with a complete picture of your financial history – from outstanding debts and payment patterns to potential red flags, such as bankruptcies or foreclosures. Lenders use this information when deciding whether to approve your application and what interest rate to offer you. A clean credit history with low balances and on-time payments positions you to get the best mortgage rates and terms.

Explore our Learning Center to dive deeper into the mortgage process or get prequalified with Rocket Mortgage^® to view your personalized financing options and understand your buying power.