Marie Stark asked:
Do you know what your credit score is? Do you know what credit
score banks and other lenders look for when they review your
mortgage application? When was the last time you looked at your
personal credit report?
Your credit score is a reflection of how well you use credit and
many view it as an excellent picture of your financial health or
stability. Your credit score is based on information contained in
your credit report. Your personal credit report shows several
pieces of your financial history. It shows:
- How much credit you have been approved for and how much of it
you are using
- Which bills you pay on time and which bills you pay late
- Who all of your creditors are, how long you’ve had
each account open and how much credit you are using with each
creditor.
A person seeing your credit score and reviewing your credit
report can draw many conclusions about you based on what they see.
Your credit score is a numeric value between 300 and 900 that is
primarily determined by the timeliness of your past loan payments
and the amount of debt you have.
Actual rankings vary slightly from lender to lender but
generally speaking, a credit score of 620 or above is considered
good and a credit score of 619 or below is cause for some concern
and additional review. The median credit score in the United
States is 723. This means that the same number of people have a
credit score above 723 as those that have a credit score below
723.
Obviously, the higher your credit score is, the better off you
are. A credit score of 750 or above is usually considered to be
excellent, while a credit score below 580 means it could be very
difficult to qualify for a loan.
You should review your credit report at least once a year to make
sure it is accurate and to see what your credit score is. Each of
the three credit reporting bureaus — Experian, Trans Union and Equifax — are required by law to give you one free annual credit report and you can even get this credit report free online.
You can find information about getting your free credit
report online at http://www.annualcreditreport.com/
Lori
Do you know what your credit score is? Do you know what credit
score banks and other lenders look for when they review your
mortgage application? When was the last time you looked at your
personal credit report?
Your credit score is a reflection of how well you use credit and
many view it as an excellent picture of your financial health or
stability. Your credit score is based on information contained in
your credit report. Your personal credit report shows several
pieces of your financial history. It shows:
- How much credit you have been approved for and how much of it
you are using
- Which bills you pay on time and which bills you pay late
- Who all of your creditors are, how long you’ve had
each account open and how much credit you are using with each
creditor.
A person seeing your credit score and reviewing your credit
report can draw many conclusions about you based on what they see.
Your credit score is a numeric value between 300 and 900 that is
primarily determined by the timeliness of your past loan payments
and the amount of debt you have.
Actual rankings vary slightly from lender to lender but
generally speaking, a credit score of 620 or above is considered
good and a credit score of 619 or below is cause for some concern
and additional review. The median credit score in the United
States is 723. This means that the same number of people have a
credit score above 723 as those that have a credit score below
723.
Obviously, the higher your credit score is, the better off you
are. A credit score of 750 or above is usually considered to be
excellent, while a credit score below 580 means it could be very
difficult to qualify for a loan.
You should review your credit report at least once a year to make
sure it is accurate and to see what your credit score is. Each of
the three credit reporting bureaus — Experian, Trans Union and Equifax — are required by law to give you one free annual credit report and you can even get this credit report free online.
You can find information about getting your free credit
report online at http://www.annualcreditreport.com/
Lori
