CREDIT REPORT AND CREDIT SCORE There are a lot of programs to help first time homebuyers. But, in order to qualify, you have to have good credit. Most Service Members are not qualifying for these programs because of their credit score. In order to qualify for a VA guaranteed home loan, you must have suitable credit. When you apply for credit…whether for a credit card, a car loan, or a mortgage… lenders want to know what risk theyd take by loaning money to you. When lenders order your credit report, they can also buy a credit score that’s based on the information in the report. A credit score helps lenders evaluate your credit report because it is a number that summarizes your credit risk, based on a snapshot of your credit report at a particular point in time. Credit scores are often called “FICO Scores” because most credit bureau scores used in the U.S. are created by Fair Isaac Corporation (FICO). But it’s important to understand that not every credit score you can buy online is a true FICO Score. The most widely used credit score is the FICO Score. Fair Isaac calculates the FICO Score based solely on information in consumer credit reports maintained at the credit reporting agencies. You have three FICO credit scores, one for each of the three credit reporting agencies: Equifax, TransUnion, and Experian. Each FICO Score is based on information the credit bureau keeps on file about you. If your current scores from the credit reporting agencies are different, its probably because the information those agencies have on you differs. If your information is identical at all three credit reporting agencies, each FICO Score should be very close. FICO credit scores range from 300 to 850. That FICO Score is calculated by a mathematical equation that evaluates many types of information from your credit report, at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports, the FICO Score estimates your level of future credit risk. Everyone is allowed a free credit report. Federal Law allows you to get a free copy of your credit report every 12 months from each credit reporting company. Go to annualcreditreport for your free copy. Remember, what you do now will affect you in the future
Posted on: Fri, 23 May 2014 16:26:42 +0000
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