Credit Scores Heres The Break Down

Dated: 10/27/2017

Views: 162

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

InLaw Apartments Provide Tangible Benefits For Home Owners

Many homeowners are looking for ways to maximize on their investment. One idea that is gaining popularity is a space set aside for aging parents known as an In-law apartments. These additions are

Read More

The Case For Making A Smart Garage

Energy-efficiency, smart electronics and automation have come home to the rest of the house, but many garages still look and feel like neglected warehouses. Why not update the lighting and add some

Read More

Rebuilding Costs Rethinking How Much Homeowners Insurance You Really Need

Rebuilding Costs: Rethinking How Much Homeowners Insurance You Really Need Buying a home comes with numerous financial planning obligations. It’s far from a turn-key operation and one of the

Read More

Working From Home 5 Best Tips To Make It Work

Carving out space for a home office isn’t always easy, but if you have the option to work from home even part of the time, it’s essential to have a space that works for you. Here are 5 great

Read More