CHECK YOUR CREDIT

Credit reports are kept by the three major credit agencies, Experian, Equifax, and Trans Union. Your reports include a history of your loan and credit accounts and will reflect your payment history, how much you are spending, how much you owe and how much available credit you have. 

Your credit score is calculated using the FICO score model which numerically summarizes an individual’s credit history and gives a snapshot of your financial standing. 

•  On-time payments

•  Your credit limit

•  Collections accounts

•  Bankruptcies

•  Foreclosures

•  Short sales

•  Length of open account

It's not unusual to have a different score at each agency and errors are common. Contact the agencies directly to correct them but allow two to three months to get them resolved so you want to get started right away. If the report is accurate but shows past problems, be prepared to explain them to your loan officer.  

•  Pay off high-interest debts.  

•  Make all your payments on time. 

•  Only use 30% of your credit limit.  

•  Consider balance transfers 

•  Check your credit a fix errors. 

•  Request a credit limit increase. 

•  Don't open any new accounts. 

•  Don't close accounts.  

A high credit score will increase your chance of getting approved at a good rate but a low credit score does not mean you won't get financing. 

•  Excellent                   800 - 850

•  Very Good                740 - 799

•  Good                          670 - 739 

•  Fair                             580 - 669

•  Very Poor                 300 - 579