About your Credit...

Few items are of more concern when borrowing money than credit.  Your credit history says a lot about what you have done in the past, and helps potential creditors decide whether or not they will extend credit to you in the future. Good credit is particularly important for those who are self employed.

Credit Scores. Your credit scores are numerical values assigned to your credit rating based upon your record of payment, delinquencies, amount of credit lines, amount of debt, and other factors.  You can owe a significant amount of money and still have good credit scores, as long as the profile fits with the computers idea of a good risk. Paying on time is a good start, but the program also takes into account how long you have had each loan, what percentage of your credit has been used, the number of accounts opened, and the type of account.  

A score of 740 and above is generally considered to be excellent.  To score this high you will probably have no recent delinquencies, a good mix of accounts, and a history of several years of good payments.  You also will not have "maxed out" your credit cards, and probably have a mortgage and/or auto payments for a few years.  You will probably have a number of accounts, with balances on two to four of them.  You are probably a good manager of credit, and most lenders will gladly lend to you.

680 to 739 is considered good to very good.  You might  have a 30 day late, or have a large balance on a card or two, but generally things look like they are under control.  Your cards aren't up to the credit limit, and you have a history of several years of making payments.

620-679 is considered fair to good.  You might have a few "derogs", or maybe you owe on more accounts.  Some of your accounts may be maxed out.  You might not have as much of a history as some of the upper credit scorers.  You may even have an old bankruptcy or foreclosure in your past. Still, most of your payments are on time, and you are still an "A" paper borrower as long as the other factors of your file are in order.

580-619 is considered poor to fair.  You may pay more for mortgage money, or even be denied credit by some lenders because of your score.  You either have a limited history, or you have made some boo-boos with your creditors.  Usually in this range somebody didn't get paid on time.  You will need our expertise and counseling to get the best loan available.  The more equity you have , the less of a problem this credit score is.  If you have received this credit score because of errors on your credit report, you need to take action to get them corrected.  Do not think that they will go away on their own. They will not.  Also, you may have been the victim of credit fraud, and if this is the case the sooner you take action, the better.

500-580  Help is definitely recommended.  There is probably a Bankruptcy, foreclosure, or Tax liens or other public record.  This may have been caused by divorce or illness.  Recovery is possible, but for the short to term are in the "Assigned risk " category of mortgage loans.  We can help you out of this area, and in many cases can get you financed.  You can probably forget about that Zero-down EZ doc loan though.

0-499  You may have little or no credit, or have had some serious problems in the recent past.  If you are currently in default on your mortgage or other loans, or have declared bankruptcy within the last year you may fall into this category.  Financing is available, but may be expensive or require a large down-payment or equity position.  If your score is low primarily because you have not established credit some forms of alternative credit may be considered.  Call us for help and more details!!

Curious about your credit?  You can learn more at the following sites, or call us to see about a free credit report!


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