Mortgage Information
Good Credit: Know the Score!
by
Rob Polichetti
800-242-0919 ext. 102
rpolichetti@coastcities.net
Good credit
translates into lower rates for the consumer.
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 human intelligence.
Computerization has made the loan process much more efficient. That’s a
good thing. But computers take all the subjectivity out of credit
evaluation, 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. Various companies can show
you your credit profile. 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
score means to a creditor:
|
720 and over |
WONDERFUL! You
are at the top with the best rates and terms offered to you. |
|
700-719 |
Excellent
score. You are a very desirable borrower. |
|
680 - 699 |
Good credit.
You should be in strong shape to buy. |
|
660-679 |
OK credit.
Don’t look for other exceptions. |
|
640-659 |
Borderline. OK
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! |
If you have a client
in need of credit repair, let us know!
We have reputable resources to assist your clients with credit repair.
|
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