Tuesday, June 12, 2007

Loans and Credit and Fico Scores, Oh My!

If you are looking to purchase a home soon, or you already own one and you're thinking about refinancing, it's a good idea to check your credit and make sure all is well before filling out that loan application. There may be errors or things you can do that will better your score and allow you to get a better rate. Most mortgage lenders will give you their best rates with a score of at least 680. If you're hunting for 100% financing, you may need an even higher score. However, there are many other factors such as down payment, whether or not this is a primary residence, and much more that go in to determining your rate.
You'll need to get all 3 credit bureaus and their corresponding scores. You can try My Fico for a convenient place to get all three, or you can order each one individually. When you receive your report, you'll want to make sure there are no errors. If there is, contact the credit bureau and the creditor in writing asking them to make the correction. This could take up to 60 days. In addition to making corrections, you may want to pay down revolving credit as much as you can. Carrying high balances on your revolving credit is a big factor in your FICO score. More information on how to manage your credit can be obtained at the link above.
Managing your credit and getting the best rate possible on your long term debts can be one of the best things you can do for your financial health!

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2 Comments:

At 8/14/2007 9:28 PM, Anonymous creditlucky said...

The intention to get a home loan worth a proper consideration. One should get the information in full about credit. Building credit history, managing good credit score and other usefil things to do well with money affars.

 
At 12/25/2007 9:00 PM, OpenID ladyperfection said...

Please, give me advice! My FICO score is far from perfect. It is 345. Can I have a claim on mortgage credit and get a good credit card in future as well? :) And what should I do for this?

 

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