Credit Scores Heres The Break Down

Dated: 10/27/2017

Views: 182


Credit Scores? Here’s The Break Down


If you’re in the pre-mortgage application phase, you’ve probably heard the term ‘credit check’ thrown around. You know how credit cards work, but maybe you’re not so sure how credit scores do. Have no fear, this is a broken-down explanation of everything you need to know about credit scores.

What is a Credit Score?

There’s a very important thing you need to understand when applying for a mortgage.  To your surprise, there are three types of credit scores: general credit, true credit, and your FICO score. When an underwriter decides the fate of your mortgage approval, they evaluate your FICO score. This type of score, created by the Fair Isaac Corporation, differs from others because they more accurately portray credit worthiness. FICO scores evaluate timeliness on credit payments, current level of debt, length of credit history, and all existing credit accounts.

What’s A ‘Good’ FICO score?

FICO scores are calculated into different categories. Payment history makes up about 35%, accounts owned is 30%, length of credit history is 15%, new credit is 10% and credit mix is 10%. Most FICO scores range between 300-850. Anything above 650 indicates a good credit history. Individuals with credit scores below 650 often report they found obtaining financial assistance difficult when applying for a home loan.

How To Keep/ Improve a FICO Score

A way to keep/improve your FICO score is know what your score is. Get a credit report every 12 months, so you stay up to date on your score. Another way to improve your score is to set up payment reminders on your phone—that way you know when your deadlines are sneaking up.

Most importantly, don’t be afraid to ask for advice. We will be happy to share our expertise and insight with you to help figure out the best option for financing your new home.

For More Info Visit: http://www.bondstreetmortgage.com

Want to Advertise on this Site?

Latest Blog Posts

West Belmar Beach House Just Listed Only 325k

MOVE-IN Ready beach home with large fenced-in backyard in sought after West Belmar! Home features hardwood floors, Hunter Douglas shutters, living room, family or dining room, eat-in kitchen with

Read More

How Do I Know If Its A Good Idea To Refinance My Mortgage

Are you interested in paying less per month on your mortgage? Or perhaps you would prefer if your mortgage was paid off a couple of months – or years – faster? If you are a homeowner with a

Read More

158 Lawrence Ave Ocean Grove Open House Feb 16 Offered At 549k

2001 built colonial with 3 bedrooms and 3 full baths - Offered at $549,000A huge rocking chair front porch welcomes you. The first floor consists of the living room, dining room and newer kitchen

Read More

Just Listed In Ocean Grove

Offered at $399.999 - 130 Stockton Ave. Ocean GroveCharming beach house or year-round residence with large back yard and newly refinished hardwood floors. Home was originally 2 bedrooms, plenty of

Read More