Credit Report Red Flags to Avoid


If you're trying to get a mortgage these days, you know a clean credit report is more important than ever. But simply having a healthy credit rating isn't enough. Even folks with good credit ratings can get dinged by lenders if they have any of these three common red flags, says personal finance expert Lynnette Khalfani-Cox of our sister site WalletPop.

If your credit reports are riddled with numerous late payments or major black marks -- like a recent foreclosure or a fresh bankruptcy filing -- it probably comes as no surprise that you'll have a tougher time getting a loan than someone with perfect credit.

But what about those of you who have decent credit ratings, or maybe even good credit? A solid FICO score alone frequently isn't enough to get a loan application approved, especially if other items on your application are sending up warning signs to a lender.

Here are three red flags -- on your credit reports and elsewhere -- that could cause lenders to think twice about extending you credit.