Good credit is more important than ever, if you want to get a St Louis real estate loan. Knowing what's on your credit report and how lenders view various aspects of your report is crucial.
First Things First
Get a copy of your credit report from all three of the credit reporting companies: Equifax, Experian, and TransUnion. You are entitled to one free report every year from each of the three credit reporting companies. Whether you're considering getting a loan or not, you should always take advantage of that opportunity to make sure your credit reports are accurate.
Range
FICO® scores range from 365 to 840. While the standards for what lenders consider a "good" FICO® score changes constantly and varies by lender, here's a general breakdown of today's standards:
•· Over 750 is excellent and should get you the best terms and rates.
•· Under 600 might get you a St Louis real estate loan, but you'll want to shop for the lender who'll give you the best rates and terms.
•· Under 500, you need to brace yourself for waiting until you get your credit in better condition.
What Determines Your Score
There are many things that can affect your score. Magically (or not), each of the three companies tend to view things just a little differently, which means your score will not be the exact same for all three. That's why it's so important to get copies of your report from all of them. However, the two main things that all companies consider in rating your credit score are delinquencies and debt-to-income ratio.
What You Can Do To Immediately Improve Your Score
•· Check the entries: Make sure any debts or delinquencies listed are true. Report any errors.
•· Pay off debts: But do not close accounts. Having available credit is good as long as it doesn't look like you're over-extended by having your credit maxed out. The lender may worry that you're living off your credit and can't afford your bills.
If you would like more tips on how to improve your chances of getting a St Louis real estate loan, I can help. Call me today at 314-630-4227 or email me at rfisher@sellshomesforsale.com for more information.
LINKS:
FICO scores http://www.myfico.com/CreditEducation/
"Good" FICO score http://www.myfico.com/loancenter/mortgage/step1/getthescores.aspx
Report any errors http://www.myfico.com/CreditEducation/MistakesMade.aspx
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