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Your credit score is more important than ever.

bad credit  What is your credit score?

Credit scores can range from 300 to 900 and are used by lenders to determine what kind of a risk you are likely to be as a borrower. Your score is based on several attributes –

Payment history

The single biggest factor in your credit score is having a timely bill payment history. Recent late payments are factored more heavily than old ones so start today and never let a bill get past due. Continue reading “Your credit score is more important than ever.”

Slow credit or poor credit? There’s a mortgage solution.

bad credit Life doesn’t always go according to plan.   You’ve heard that saying before.  When you have financial trouble, it can affect your credit score.    Today, that makes qualifying for a loan or mortgage very difficult….. but not impossible.

With all the new mortgage rule changes over the past 5 years, its made borrowing at reasonable rates almost impossible.   Many of us have been forced to borrowing on our high interest credit cards or finance loan companies.   These credit facilities carry huge interest rates and short amortization periods resulting in very high monthly payments.   (by the way, isn’t it ironic that the Federal Govt has tightened mortgage rules every year for the past 5 yrs but they haven’t touched the higher interest credit card companies and finance companies!   Who owns the credit card companies and finance companies?  That’s right.. the BANKS!  Who’s interest are they looking out for?)
Continue reading “Slow credit or poor credit? There’s a mortgage solution.”

How do lenders measure your credit worthiness?

Most of us understand that establishing and maintaining good credit is important.  Beacon scores or Fico scores, as they are sometimes referred to, are generated based on many factors but the main things that influence your score are:

-number of years you have had credit (the longer the better).

-your repayment history (missing payments will hurt your score).

-the type of credit you have opened (term loan, revolving line of credit, credit card or finance company purchases).

-your balance in proportion to your available limit (don’t go over 70% of your limit).

-credit utilization overall (how much of your available credit have you used up).

-number of recent inquiries on your credit (make sure you don’t apply for too much credit).

-inquiries by finance companies (hard and soft inquiries….there is a difference).

-change in address (if you move frequently, this can affect your score negatively).

All these things affect your credit score.  Wondering what a good credit score is?  A great score is anything above 700.  Most mortgage lenders would agree and this would qualify you for any mortgage product   (recently, one lender came out with a 720 minimum score for a certain product).   Some mortgage products require a 680 minimum score and generally speaking, 650 and above is good…  620 and below is weak…and 580 and below is poor.

You can obtain your own personal credit report from Equifax to find out what your score is and it does not count against you… it will not show up as an inquiry on your report…there is a small cost for this….  let me know if you need more info…