scores give lenders the most precise credit information on an individual
as possible, allowing lenders to make lending decisions based on
solid information. Because lenders use these scores as factors in
decision-making, your credit score may affect your ability to
buy a new home.
the higher the score, the better your application for credit will
look to a lender. Of course, lenders will also review your income
level and employment history when making their decisions.
these credit scores were shrouded in mystery. Now, you can get
your credit score, the number from 0 to 800 that records a snapshot
of your credit rating, with just a few strokes of your keyboard
and a nominal charge.
log onto www.myfico.com.
This address takes you to the web site of Fair Isaac Corporation,
the credit scoring system that's most frequently used. You will
be charged a fee to access your score online. The site provides
information on credit scoring, a sample credit score report, a glossary
and a list of frequently asked questions.
obtaining your score, you'll need to register by providing personal
information. Then, you'll be asked questions that will verify your
identity. You'll then create a password-protected profile and choose
a method of payment.
completed these steps, you'll see your credit score, along with
information on the factors that are affecting your score most.
the factors that affect credit scores are payment history, debt,
length of credit history, amount of new credit and credit mix.
Payment history is the most heavily weighted factor. People with
lower scores (from 0 to 499) are most likely, statistically, to
default on loans, file for bankruptcy or make very late payments
on debt. The amount of debt you carry is the second most-heavily
that your credit score is a current snapshot of your credit history.
This score can change gradually over time. Past credit problems
will have a lower impact on your score as time passes.
your credit score report, FICO offers tips on paying off debts
with high balances quickly and steps to building a good credit history.
Some tips are common sense: You should pay your bills on time, keep
the balances owed as low as possible and try to limit the number
of credit applications you make.
planning to purchase a home, you should discuss your credit
score with your lender. He or she may have more tips for improving
your credit score, repairing a bad credit rating and increasing
your home purchasing power. We can recommend loan officers for you
to work with, just give us a call.