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Home Mortgage - How Important Is FICO
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Refinance a Mortgage After Bankruptcy
If you are looking to rebuild your credit after bankruptcy, an Illinois mortgage refinance can help. But making the decision to refinance can be tough. There are a lot of considerations that should factor into your decision.
Timing
A bankruptcy can have a negative effect on your credit rating. In most cases, bad credit will not stop you from getting an Illinois mortgage refin... Read mortgage refinance article
Private House Sales
UK estate agents are not a particularly loved bunch. There remains a belief that many abuse their position because people have no option but to deal with them when buying or selling property.
However, the Internet has revolutionised private house sales which can now be quite easily carried out without recourse to estate agents in the UK, potentially saving you thousands of pounds in fee... Read mortgage refinance article
Home Mortgage - How Important Is FICO
Some things in life are important. Some things in life are EXTREMELY important. Your FICO score is perhaps THE MOST important number in your life. It will eventually affect literally every aspect of your life. From applying for a job, to renting an apartment, to applying for a car loan to applying for a home mortgage-your FICO score-rightly or wrongly says a lot about you without saying a word--only a number!!!
Of course FICO isn't everything. On the other hand as they say "it is way ahead of whatever is in second place". Employers are using it to determine stability. Landlords are using it to determine ability to pay timely and other factors associated with being a good tenant. Too, lenders use it to determine if you get a loan and at what rate. Insurance companies use it to determine what kind of risk you are.
FICO scores are a composite of data using scoring models and mathematical tables that assign points for different pieces of information which can be predictors of future credit performance. Developing these models involves studying how millions of people have used credit. Credit scores analyze a borrower's credit history considering numerous factors such as:
- Late payments
- The amount of time credit has been established
- The amount of credit used versus the amount of credit available
- Length of time at present residence
- Employment history
- Negative credit information such as bankruptcies, charge-offs, collections, etc.
Amazingly income doesn't count. Think about it a millionaire who doesn't pay his bills on time is worse off than a $40,000 yr wage earner who does.
For many people the best time to check your FICO score is 6-12 months before making a major purchase like a car or a home. Why so long? If there is a problem it will allow you sufficient time to fix it. If repair work needs to be done to your score that can be a lengthy process. To some, they make the argument that you should monitor your score on a regular basis-it is that important.
There are very few things you can do before applying for a home mortgage loan that are more important than knowing your FICO score. Fair Isaac & Company- FICO-is the score that greatly determines your interest rate on any loan-car, furniture, home equity, and of course on credit cards. It can even determine IF you get the loan. And nowadays it is so much more. Try renting an apartment, getting car insurance, or even getting a job without someone checking out your FICO score.
Your quest for the BEST deal on a home loan starts with knowledge and information-you can't have too much of either.
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Home Mortgage - Best Ways to Improve Your FICO Credit Score
There are very few things you can do before applying for a home mortgage loan that are more important than knowing your FICO score. Fair Isaac & Company- the heart of FICO, the score that greatly determines your interest rate on any loan-car, furniture, home equity, and of course on credit cards. It can even determine IF you get the loan.
A FICO score is a composite of many historical factors (as many as 22) used by millions of people to create a single score that is used by virtually all lenders to predict future behavior.
Of course FICO isn't everything. On the other hand as they say "it is way ahead of whatever is in second place". Employers are using it to determine stability. Landlords are using it to determine ability to pay timely and other factors associated with being a good tenant. Too, lenders use it to determine if you get a loan and at what rate. Insurance companies use it to determine what kind of risk you are Improving your FICO score can help you:
- Get better offers for credit
- Lower your interest rates
- Speed up the approval process
- Save You Money
- Perhaps get a better job
There are several things you can do to improve your FICO score: some are obvious, some not so obvious. It takes a lot longer to repair your credit than it does to ruin it. So if you have questionable credit NOW is the time to get going at fixing it. Lenders are looking for trends-establish a new one NOW. They are looking for a long history managed well.
Get a Copy of Your Report and Review. Believe it or not mistakes are made. It is up to you to get them corrected.
Pay Your Bills Timely. Maybe the biggest factor of all in determining your score.
Minimize Credit Card Applications. Don't open a lot of accounts at once-spread them out over a year or more. I used to think the more the merrier-WRONG!
Don't Apply for Credit You Don't Need. Every time you apply it shows up on your report.
Keep Balances Low. The magic number seems to be in the 25-30% range of credit used to amount available. So if you have an available limit of $10,000, keep your usage at $2,500-$3,000.
Seriously Reconsider Closing an Account. It is better to use an account very occasionally than close it.
Use Credit Responsibly. It will pay immeasurable dividends for you.
Check out www.myfico.com for a calculator using current rates. There is a wealth of information at www.fico.org
For a single three digit number to have such an enormous impact on your life, it behooves you to keep that score as high as you can get it. It will save you ton of money and maybe even help you get a desirable job. Keep an eye on your score with regular monitoring and use your credit wisely.
Your quest for the BEST deal on a home loan starts with knowledge and information-you can't have too much of either.
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Home Mortgage - How Important Is FICO
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