Credit Scores – Tipping the Scales in Your Favor

Credit . . . it does keep us guessing. Until recently, the secrets of credit score calculation have been very closely guarded. We can now estimate how your score is put together. Credit scoring systems vary for mortgages, credit cards, automobiles, insurance, medical, etc. So it’s important to know which credit score system you are applying for credit in.

For home financing and mortgages, your credit score is a numericalrepresentation of your statistical likelihood to repay credit that is extended to you. Scores range from 350-850. Your score is a “snapshot” of specific moment and can change with new actions and the passage of time.

Below is the general breakdown for how your credit score is measured:

Payment history = 35%
Amount owed = 30%
Length of credit history = 15%
New Credit = 15%
Types of Credit in use = 10%

With the credit markets tightening up their requirements to extend credit it’s important that you take stock of your credit score and determine if it’s good enough to get a home mortgage. If you’re unsure, the sooner you ascertain the score and clean up the credit issues the better. It’s taking longer than before to fix or clean up credit scores and it’s not unusual to find errors on your report. A mortgage representative can help you with getting a free credit report, analyzing your credit worthiness, and advising you on exactly the steps you need to take in order to correct your credit. Once the credit issues have been resolved, then the mortgage lender can run a “re-score” credit report in which will show the new improved credit score.

To find out your credit score and have it analyzed, fill out the form below and submit. A mortgage lender will be in touch with you shortly.

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