How Credit Scores Impact Mortgage Applications:
Having good credit and being an educated consumer can save you money. You will get better interest rates and better terms, which saves a lot of money in the long run. Additionally, you can save money on insurance. Know what is in your credit report and know what your score is. Lenders are in business to make money. If you don’t know what’s in your credit report or what your score is, a lender can charge you more.
But you’re asking in your head, how can credit score affect your mortgage applications? For starters, credit scores aid in measuring debt and your capability in paying back loans. Also, it helps in determining your interest and mortgage rates.
Watch this video and dig deeper.
Categories: Credit Score Videos Tags: Applications, Credit Score, Mortgage
Q&A: Why is my credit not building?
Question by : Why is my credit not building?
For the past 4 years I’ve been renting apartments and have had utility and cable bills under my name. Just recently I tried applying to rent a house (nothing new for me) but when they ran the credit check on me it said that I have “no credit score”.
How can this be? In the mean time I plan on openning a credit card in my name ASAP to start building my credit from scratch, but is there any chance they got it wrong? And how can I fix it? I don’t get how I can have absolutely no score at all. Do I have to open a credit card before my other bills start counting towards my credit?
Please help!
Best answer:
Answer by SPIFIMAN1
Rent, utilities, cell phones, gym memberships, checking and savings accounts are not extensions of credit and do nothing to build score.
To build a credit score you must have either credit card (revolving) accounts or car, boat, home, motorcycle, furniture (installment) accounts that you have paid over time.
People that have never established credit, have not used it in several years or have such bad credit that their score is below 300 will always default to a 0 under the FICO algorithms.
What do you think? Answer below!
Categories: Credit Score Questions Tags: Building, Credit, Credit Score
How High Does My Credit Score Have To Be?
Among the many different numbers that accompany us throughout life, our credit scores are one of the most significant. The typical range of credit score varies from 350-800 while some model range up to 900. Those that have higher than 750 can get best interest deals and insurance premiums while consequently, people having low scores get higher interests and higher premiums. In order to have your credit score improved, a person must be able to understand what makes up the rating as a whole.
However, you might be wondering how high your credit score has to be to get a mortgage or an auto loan. Watch this video and the questions that have been bothering you might just be answered.
Categories: Credit Score Videos Tags: Credit Score, high
Why is it so hard to get your credit score?
Question by : Why is it so hard to get your credit score?
I can get my credit report but it does not actually have my credit “score” included on it. I asked three different people at the bank I deal with for my score but have been told that they can’t just give me MY score, but if I were to take out a loan application, (at a fee of course,) I could get it that way. I don’t want to take out a loan for a fee to get something that belongs to me to begin with. Finally, one teller who has known me for a while jotted it down on a piece of paper and slipped it to me with an additional note saying not to tell anyone that she gave it to me.
Why is it so hard to get your credit score? After all, it is YOUR credit score.
Best answer:
Answer by the_chief94
I have heard this frustration expressed before, the first thing that I always tell people is that the credit report is actually the important document for you to be familiar with and maintain the integrity of. As long as you know what is on your credit report is accurate you should be fine. You can also familiarize yourself with how your credit score is calculated. More information on that can be found all over the web.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: Credit Score, Credit Score Explanation
How to Build A Good Credit Score
People who are aiming to buy expensive new gadgets, a new home or even a new car will often need the loans provided by banks. Yet in order to be able to apply for one, a person must have a very good credit score. Otherwise, banks and lending establishments will turn your application down. This article will explain what this credit score is all about and the steps that a person can take to boost it.
The various systems used to determine a person’s credit score were invented in order to create a certain standard method of gauging clients and their ability to pay their own credits. This scoring system ranges from 300 to 800; consequently, the higher the rating, the more chances that banks will allow you to have loans and credit deals. Banks and lending companies do not usually give loans to people having scores that are below the six or five hundred point marks.
One of the simplest things one can do in order to keep his score high is just paying bills on time. One or two delays can pretty much screw things up. People who are not keen payers will soon realize that they are being turned down almost everywhere they go. One must make a calendar as to when certain bills are to be paid, so that he will have a timetable as to what bills are of high priority to be settled as soon as possible. One can even allow their banks to transfer his money and pay for these bills at the end of each month to avoid any delays.
If a person has received his newly approved credit card, he might be very well tempted to use it all up all at once. This is somewhat not advisable. He must never use more than 40 or 50 percent of what is left of his total money. This will give banks and lending companies a gauge that this person is responsible enough for his money. These steps, if followed, will surely help a person save money and obtain a good credit score that will soon help him in ways he could have not foreseen.
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Categories: Credit Score Articles Tags: Credit, Credit Score, Loan, Score
Credit Scores – A Good Indicator of Financial Stability
Credit, like taxes and death, is surely inevitable in life. Everyone would want to live a life wherein he or she doesn’t owe anything to any person but times when we need to borrow cannot be avoided. So it will surely help us to have a good credit score since it will help us be in the best position to apply for loans and credits when the need arises.
But how can a credit score be considered as a good one? It would help to define a few things firsthand. This article will talk about the most common type of credit score standard used in the United States which is the FICO system. FICO scores constitute information that is primarily coming from three of the major credit reporting agencies which are aptly named as Equifax, Experian and TransUnion.
These agencies utilize the FICO system software that calculate a person’s score and they are owning separate databases which is sometimes cause of dissonance because it pertains to a person having three different FICO credit scores at a given time which ultimately depend upon the bureau depended on. Usually, scores are along a narrow range of values. If the three scores are greatly separated in terms of values, then it is time that you must investigate.
Scores do range from 300 to 850 and has median value of 723. Median pertains to the middlemost value between the top and bottom halves of the range. If a person’s score is above 723, then he is located in the top half and around that area, one has a ‘good’ score. But in a practical way of approaching things, good translate into better loan rates that are given by lending institutions and companies. The most prominent way of telling information lies in the Informa Research Services that are in constant correlation with FICO scores associated with loan rates.
Maintaining good credit scores as well as trying to aim for one surely has its benefits. It provides financial stability and secures a person financial future. This allows him to enjoy the nicer things in life without worries.
Related Credit Score Articles
Categories: Credit Score Articles Tags: Credit Score, Good Credit Score
Credit Repair: This Sneaky Trick Raises Your Credit Score Legally and Quickly
Credit is absolutely a huge a part of one’s existence. It is actually your ticket to purchasing a house, getting financing, and even opening a banking account.
Truth be told, when your credit score is not as high as you would want it to be, you’re virtually headed toward the wrong direction. It is possible to fix this by raising your credit. But, you do not need to visit any credit repair agency. It can be done on your own.
In this video, you will learn a sneaky yet very legal trick that not only aids you as you do your credit repair but also boosts your credit score almost instantly.
Categories: Credit Score Videos Tags: Credit Repair, Credit Score
Why would the car dealership come up with a different credit score than what I personally pulled?
Question by Justasking: Why would the car dealership come up with a different credit score than what I personally pulled?
I have my access open for Trans union to track my credit, as I recently paid off all my debt and am working hard to improve my credit score which, according to Trans union is a 680. Keep in mind that I also leased an apartment recently and they said my credit score had to be above 600 in order to qualify.
I went to the car dealership because my lease was up and I wanted to get into a new car. When they pulled my credit (they told me they pulled the Trans union one), they told me my score was 508. I almost died right there. When I told them something must be incorrect and pulled up my own profile I have access to, the leasing agent told me that I only have access to my “personal credit score”.
It sounds like a bunch of crap to me. I can understand that my score will vary slightly between the 3 different credit bureaus, but not by over 100 points!
Why did they come up with such a different score and should I be concerned?
Best answer:
Answer by Kristin Elizabeth
One credit score could be drastically lower than the other 2. If you had unpaid debt that has now been repaid, one credit agency may not have been notified of the repayment. Someone else’s social security number could have also mistakenly been associated with yours and hurt your score. You will need to pay to see all 3 credit scores then contact the agency with the 508 score to see where the discrepancy is coming from.
What do you think? Answer below!
One credit score could be drastically lower than the other 2. If you had unpaid debt that has now been repaid, one credit agency may not have been notified of the repayment. Someone else’s social security number could have also mistakenly been associated with yours and hurt your score. You will need to pay to see all 3 credit scores then contact the agency with the 508 score to see where the discrepancy is coming from.
Categories: Credit Score Questions Tags: car dealership, Credit Score
Do-It-Yourself Credit Repair
Credit is certainly a large a part of one’s existence. It is actually your shot at purchasing a house, getting financing, as well as opening a banking account.
The reality is, when your credit score is not exactly ideal, you’re virtually headed towards the wrong direction. It is possible to fix this by raising your credit. But, you do not need to visit any credit repair agency. It can be done on your own. I’ll let you in on some tips in boosting your own credit score sans paying for the credit repair companies.
Look into your credit all the time just to be very accurate. It is certainly recommended to make contact with the three major credit agencies (Experian, Equifax, and TransUnion) and obtain your updated credit evaluation to guarantee the preciseness. More to these, download letters written in advance which you’ll be utilizing for credit reporting agencies, it could prove useful.
Get a hold of your annual credit history, it’s free of charge anyway. Also, don’t be reluctant in requesting for a “proof of debt” out of your loan provider and negotiate together with regard to your repayment plan to prevent any problem from arising in the long run.
If there are any judgment proceedings, make sure to appear, no matter what. Additionally, it pays to understand the statue of restrictions for all your financial obligations.
You will find that there are many different ways to enhance your credit rating. Perform a little bit more research but don’t just stop there. All this information is going to waste should you not implement it.
Categories: Credit Score Articles Tags: Credit Repair, Credit Score, Repair
Build A Stronger Credit Score
There are various ways you can build up a strong credit. Sometimes, they tend to be confusing though.
Take your shot at boosting your credit score by watching this videos and heeding these 7 simple and basic tips. Paying bills on time & avoiding credit balance transfers are just among the very easy to follow steps but you can definitely rest assured that you are on the right track. Gain some useful perspective and start leveling up, credit score-wise.
Categories: Credit Score Videos Tags: build, Credit, Credit Score, Score, Tips