Lenders tightened credit requirements, getting a good interest rate - or a loan at all-requires an understanding of how the scoring system works. Mortgage rates have tumbled, yet many would-be buyers and refinancers are missing the chance to lock in loans at record lows because their score is too low to qualify for the best rates or too low to qualify for any loan at all. Lower scores mean higher rates; scores below 580, there is no qualifying which means missing out on what may be once-in-a-generation interest rates. Credit scores are three numbers lenders use to gauge your creditworthiness. A few years ago a 720 FICO CREDIT SCORE was enough to get the best rates and terms. Even people with lower scores could get a decent rate, and at the peak of the lending boom it seemed almost no score was so low that it merited a rejection. Now, lenders demand at least a 740 score for the best mortgage rates. Less-than-stellar credit can hurt in other ways. After all, credit information is used: By insurance companies to evaluate applicants and set premiums, by landlords to decide who gets apartments & by employers concerned about higher risk of theft from those with troubled finances. Clearly, cultivating good credit scores is an essential 21st-century skill. The good news is that it's possible to boost your numbers by keeping a handle on your finances and to know how credit scores work. Plenty of folks handle their credit well enough to earn good scores and by recognizing how to improve their score:
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Deborah Prather Blog
Tags >> Credit Score
Jan 4, 2010
Raise your credit score to 740
Jan 4, 2010
Raise your credit score to 740
Lenders tightened credit requirements, getting a good interest rate - or a loan at all-requires an understanding of how the scoring system works. Mortgage rates have tumbled, yet many would-be buyers and refinancers are missing the chance to lock in loans at record lows because their score is too low to qualify for the best rates or too low to qualify for any loan at all. Lower scores mean higher rates; scores below 580, there is no qualifying which means missing out on what may be once-in-a-generation interest rates. Credit scores are three numbers lenders use to gauge your creditworthiness. A few years ago a 720 FICO CREDIT SCORE was enough to get the best rates and terms. Even people with lower scores could get a decent rate, and at the peak of the lending boom it seemed almost no score was so low that it merited a rejection. Now, lenders demand at least a 740 score for the best mortgage rates. Less-than-stellar credit can hurt in other ways. After all, credit information is used: By insurance companies to evaluate applicants and set premiums, by landlords to decide who gets apartments & by employers concerned about higher risk of theft from those with troubled finances. Clearly, cultivating good credit scores is an essential 21st-century skill. The good news is that it's possible to boost your numbers by keeping a handle on your finances and to know how credit scores work. Plenty of folks handle their credit well enough to earn good scores and by recognizing how to improve their score:
