Arizona Credit Reporting Laws

Credit Scores determine Mortgage Rates in Arizona. The key to saving more money when Buying, Refinancing, or Taking Cash Out of Your AZ Home is to maximize your three FICO credit scores. Many consumers use Credit Karma to monitor their credit, but the reality is, CK scores are not the same as FICO Credit Scores. In my experience the CK scores deviate from AZ Mortgage credit scores by 20 to 50 points per credit bureau. So the key is to talk to a mortgage loan professional who can run your actual credit scores, and then help you procure the best mortgage at the lowest possible interest rate. There are a couple of obvious, and not so obvious strategies used for increasing your credit scores:

  • Pay all debt obligations on time
  • Do not apply for extra credit. Credit Inquiries result in credit score reductions
  • The more debt you pay off, the better your credit scores will be
  • Do not close old credit accounts. Older accounts demonstrate a greater credit history
  • Do not pay off latent adverse credit accounts that have been inactive and recently unreported
  • It is better to build a diverse credit history ie., Installment, Revolving, Retail & Mortgage Debt 
  • Ask a Family member to add you to one or two credit accounts, so you can benefit from their good credit history
  • If you have an unpaid collection or judgment, try to negotiate with the creditor to "Remove" the item from all three credit bureaus, in exchange for partial or full payment. Make sure you receive a written commitment stating that the creditor will remove the account from Transunion, Equifax & Experian 
  • When all else fails, write repeat letters to the three major credit bureaus requesting that they provide you with the legal documentation used for reporting a particular account, otherwise request that they remove the item from your credit report
  • View credit reporting news updates National Consumer Assistance Plan
The Fair Credit Reporting Act explains consumer rights, and the credit reporting bureaus and agencies responsibilities, for reporting credit in AZ. Credit bureaus and credit agencies are responsible for correcting any inaccurate credit within 30 days of a consumer's request. If a consumer provides additional documentation during the 30 day investigation period, the credit bureaus are entitled to an extra 15 days. The FTC, (Federal Trade Commission) is responsible for oversight of the FCRA. Additionally the Arizona Attorney General is responsible for credit reporting, and consumer rights in AZ.  

The point is that by paying your credit obligations on time, paying your balances down as quickly as possible, and holding the credit bureaus accountable for accurate credit reporting, you can maximize your credit scores, and save more time and money when Buying, Refinancing, or Taking Cash Out of AZ Real Estate! 

Note, you are entitled by law to a Free Annual Credit Report showing exactly how Transunion, Equifax & Experian are currently reporting your credit. This is considered a "soft pull," and will not affect your FICO credit scores. 

Steve Bernstein is a Mortgage Broker & Mortgage Credit Expert in Arizona for 22 years. If you are Buying, Refinancing, or Taking Cash Out of an AZ Home, Contact Local AZ Mortgage Expert Steve Bernstein To Help You Save! Phone: (480) 424-7144, Fax: 866-424-7176, NMLS 1230169,,

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