Credit scores are considered a fundamental measure to determine an individual’s capability to handle financial obligations. It has an impact on transactions such as mortgages, credit cards, auto loans, and more. In fact, for lenders, it’s a qualifying factor to gauge one’s creditworthiness. Some of the investigated elements are your total debt, the number, and types of accounts, and the number of late payments for any existing credit.
Understanding what influences your credit score can help you maximize your score before applying for a loan and getting the best rate for your mortgage. Let’s look at what you need to know:
What is a good credit score?
According to Equifax, “although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good, and 800 and up are considered excellent.”
A high credit score implies good and responsible credit behavior, making lenders and creditors more confident when evaluating a credit request.
What information can you find in your credit report?
A credit report is a summary of your credit history. The three major credit bureaus — TransUnion, Equifax, and Experian — collect credit and other information about you.
In your credit report, you’ll find details such as:
How do I nurture a good credit score?
Have a good credit score comes with many benefits, including lower interest rates on credit cards and loans. It can also help save money on insurance and security deposits on certain utilities. Here’s a quick guide
How can I settle any contentions on my credit report?
According to the Fair Credit Reporting Act (FCRA), the credit reporting company and the information provider (the person, company, or organization that provides details about you to a credit reporting company) are accountable for correcting inaccurate information on your report. Contact either your credit reporting company and the information provider if there are disputes to be settled.
If you need a professional to check on your credit score, we offer these types of services. Contact Ultra Mortgage to discuss your credit standing and how we can work towards bringing your score up
Joel M Berinson
NMLS # 32372
Ultra Mortgage NMLS # 1599214