Credit Scores Heres The Break Down

Dated: 10/27/2017

Views: 482

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

Latest Blog Posts

Real Estate Tops Gallup Survey Of Best Long Term Investment Again

Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds,

Read More

What The Experts Are Saying About The Economic Slow Down

More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research: “A

Read More

How Coronavirus Affects The 2020 Real Estate Market So Far

What Is Coronavirus?COVID-19, better known as coronavirus, is a viral infection with flu-like symptoms. The virus is primarily transmitted via respiratory droplets, such as when an infected

Read More

Now Is The Time If You Are Considering Selling

The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in that change. The average 30-year rate in 2019,

Read More