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Special offer...
A credit
score is a numerical value lenders give your credit file. It
utilizes advanced algorithms to evaluate your credit worthiness.
Many lenders base decisions solely on credit scores, thus it is
important that you are aware of what your score says about your
credit worthiness.
Our credit score
option includes a single Experian® certified
credit report. You get immediate online access to your credit report
and score for one low price of $14.95! Click
here to order.
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About credit
scores
We often get asked about credit scores...
What's normal? What's average? How does my score rate? Well, here's
the scoop on credit score ratings.
Many
factors are weighed into a credit score, in "real-time." When a
credit score is computed, advanced algorithms consider a variety of
factors from payment history to an individual’s current
debt-to-income ratio. It gives lenders and creditors an instant snap
shot evaluation of one’s creditworthiness on a scale of 375 to 900
points.
How
different variables are weighed in a credit score:
1. Payment
History: Roughly 35% of one’s credit score.
2. Amounts Owed:
Approximately 30% of one’s score.
3. Length of Credit History:
About 15% of one’s score.
4. Pattern of Credit Use: About 10% of
one’s score.
5. Types of Credit in Use: About 10% of one’s
score.
Rankings of
credit scores:
650 and Above
In
general, a score of 650 or above indicates a very good credit
history. People at this level should be able to qualify for credit
or a loan fairly easy and at a competitive interest rate.
620
to 650
Scores between 620 and 650 indicate
"good credit." Average FICO credit scores fall into this
range.
Below 620
A credit score
below 620 may indicate a greater credit risk, and prevent a borrower
from getting the best interest rates--but it does not mean that
mortgage funding can't be found.
Keep in mind that credit scores
only become meaningful and useful within the context of a particular
lender's policies and underwriting
guidelines. |
