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Home Financing...
A good credit history is more important than ever. Solid credit keeps
down the cost of consumer financing and it can be the deciding factor
in whether an auto or home loan application is approved.
In today’s fast paced,
high-tech age, your credit history will be reviewed more often by
artificial intelligence than by human intelligence. This
computerization has made the loan process much more efficient. That’s
a good thing. But computers take all the subjectivity out of credit
evaluations, and that means you have to take ownership of your own
credit standing to make sure you’re not blindsided by any stain on
your record.
It is important that everyone know his
or her credit
score. Everyone is entitled to one free credit
report a year. There are three credit bureaus that can show your
credit profile to you…
Experian at
www.experian.com, Equifax at
www.credit.equifax.com, and Transunion at
www.transunion.com.
Fairly frequently,
erroneous information appears on a credit report. This can take a few
months to correct, which might mean the difference between being able
to purchase your dream home or not.
Credit scores usually
range between 400 on the low side to 800 on the high side. On rare
occasions these ranges can be exceeded. Sometimes a score cannot be
obtained for factors like lack of credit history or too few lines of
credit. If you know your score, then you can see what the creditors
see and have the ability to get a jump-start. Here is a quick
breakdown of what a credit score means to a creditor:
720 &
over Wonderful, you are at the top. Best rates and terms
700 -
719 Excellent score. You are a very desirable borrower.
680 -
699 Good credit. You should be in strong shape to buy.
660 -
679 Okay credit. Don't look for exceptions
640 -
659 Borderline. Okay if everything else is strong.
620 -
639 Weak. The rest of your file must be perfect.
600 -
619 Difficult. Needs some work or a special program.
Below
600 Trouble. Try to fix up your credit.
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