Do you even know what it is? Is it good enough? What is good enough? Do you care? Should you? Should your customer/client?
SURE! We should all care. I recently checked mine on www.freecreditreport.com. I was shocked at what it said...it was 10 year's old in my work experience...actually 15 years. There was lot's of information missing...lot's of good info.
That being said...many borrower's are finding issues with their credit scores, once a mortgage broker pull's credit. Many have no idea what is on the report, and many have disputes.
A credit report is necessary in order to apply for a mortgage. The mortgage broker has to pull a credit report in order to take application for a mortgage loan.
In today's market, borrowers must have credit scoreds of at least 720 and often as high as 750 to qualify for the best mortgages and credit cards. Same with car loans. G*D forbid they buy a new car before they try and buy a new home, condo, town home...
Only a third of the formula that makes you credit score is whether or not you pay bills when they are due...
If you want a great loan, pay off your credit cards. Don't use them for 60 day's prior to applying for a mortgage, loan application, or a new credit card. Don't apply for store credit, just to get that 10% discount, they will hit your credit scores...is it worth the savings? Probably not.
If you are interested in buying a new home, condo, or a town home, take the time to check your credit score. Read what it say's and take the time to correct anything that is wrong. Note that it takes about 3 month's for these correction's to show up on your scores.
Being proactive can and will enable you to get better interest rates. Remember, your payment history is only 35% of your credit score. The available credit you have used is worth 30%. The length of time you have had the credit is worth another 15%. They types of credit you use is worth is worth 10% and every new credit application is worth 10%.
Take the time to do this PRIOR to applying for a mortgage, it can save you lot's of money in the long run.
http://www.karenmonsour.com, 954-464-4194 cell.
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Fort Lauderdale, Pompano Beach, Lighthouse Point, Deerfield Beach, Boca Raton. Beach Front & Intracoastal properties. Broward, Miami, & Palm Beach Counties, FL www.KarenMonsour.com, Coldwell Banker!
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Hi Karen,
You are so right! Borrowers so often do not pay any attention to their own credit scores, and that can have a very difficult result when they go to borrow.
Good post. All good information. Thanks for sharing it. Have a good weekend.
We were talking today that a 680 last week is now a 720 and if your were under a 520 you were not getting a loan. Today it is 580
Good post
tony
We were talking today that a 680 last week is now a 720 and if your were under a 520 you were not getting a loan. Today it is 580
Good post
tony
Order one from each credit company 4 months a part since you are entitled to one free report a year. For the most part they are consistent in what gets registered. You will know sooner if there are any problems by ordering them separately.
good stuff.
With the recent new legislation in Congress, especially the Mortgage Reform and Anti-Predatory Lending Act of 2007, HR-3915, tighter lending standards are in place, Karen. We're already beginning to see disparity issues surfacing due to the dramatic changes necessary to correct the market. I hope that these matters are fleet and that signs of a healthy economy begin to resurface in many communities where foreclosure and bankruptcy are crippling their municipalities. These problems drive up property taxes and other assessments in order to correct the budgetary losses, and it's occurring nation wide. FICO is important to all of us. Time to teach the importance of good credit to our children. Thanks for posting this important issue. Have a great weekend.
This is all good advice Karen. I've had borderline buyers walk in before a closing and announce they just bought a new car. Yes, I told them not to create any changes on their credit but they just take their chances anyway. I hope they enjoy sleeping in the car! Later in the rain~Deb
Bill,
I know it, half of them don't even know what a credit score is, let alone how if affect's their ability to get a mortgage/loan.
Bob and Carolin,
Thanks and you two have a great weekend as well. It's supposed to rain here...so I will be working and blogging in "The Rain" as a droplet...LOL! Thanks!
Tony,
Thank you!
I don't even know if a 580 will get a loan now...Maybe with 3 points????
Bob,
If you want to know all three, you can purchase them from www.myfreecreditreport.com for $19.95 and it gives you a full report...that's how I knew they still had me working at Frederick Memorial...that was over 10 year's ago...
David,
You are so very right with your comments! Thank you for posting and you have a great weekend as well! K
Debra!
I know, most people do not even realize that when they buy a car or apply for a credit card it hit's their credit...Most people, believe it or not, don't even know what a credit score is, let alone that it matters...sad!
Karen,
It is important for folks to know their score and history, HOWEVER, all 3 credit bureaus sell those free inquiries to mortgage and Realtors and car dealers as LEADS or take a huge referral fee for the name?
It is better to refer them to your local favorite lender, let them pull the real credit, build a relationship and maybe get a new client.
List and Sell (and keep credit inquiries in house) Gary @ RentonHomeFinder
Karen: This is the most important issue affecting every person in this country. There are so many little nuances that they can affect your score and definitely it is the first step in the pursuit of a home.
But what I have found most disturbing is that your credit score is now used in many cases to judge whether you should get a job.
Everyone must think of their credit score exactly as they think of their health: Ignore it and you put your life at risk.
Gary,
Thank you for the information!
Tara,
"But what I have found most disturbing is that your credit score is now used in many cases to judge whether you should get a job." I find this very disturbing as well! Great point!