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A Good Credit Report Will Help You Get Lower Interest Rate Loans!

By
Mortgage and Lending with Diverse Solutions

The fact is, we all need money! We have:

car payments,
insurance payments, Picture_31
mortgage payments,

and all of life's other expenses.

 

This means you'll work harder to cash a larger paycheck and it also means you might apply for a loan at some point to have cash available in case of emergencies.

Our recent onslaught of Fed Funds Rate cuts means lower interest rate credit cards and lower rate second mortgages (HELOCs). But you can also directly exercise a degree of control over the interest that you pay on your loans; be it the rate on your plastic or the rate on your mortgage.

An excellent Credit Score (or more specifically your FICO Score) translates into the best rates on every kind of loan; car loans, credit cards, home equity lines of credit, first lien mortgages, etc. 

Now your FICO Score will range between 300 and 850. If your score is currently above 700, you have excellent credit. If it's slightly lower than 700 (between 680-699, it's still good credit but given our current market landscape, it's definitely time for a boost! Anything less than 680 is going to cost you an added premium to today's current mortgage market rate.

 

So do you know your FICO score? If you don't, you can get a FREE credit report from a series of differenPicture_29t sources. For example, 

  1. www.annualcreditreport.com. Make sure you sign up for a tri-merged credit report. This will provide you with your FICO score from all (3) three credit reporting agencies.
  2. Contact your current lender and request a FREE copy of your credit report. (They should have no problem providing this to your for free).
  3. You can contact me here, type "free credit report" in the comments section, and I'll contact you for a FREE copy of your credit report.

When you register for a copy of your credit report, be sure to request reports from all three credit reporting agencies (Transunion, Equifax, and Experian). Not all information is reported the same to each credit reporting agency. As such, you will notice different FICO scores from each of the three credit bureaus.

If you notice any items inappropriately noted on your credit report, formally notify the respective credit bureau noting the discrepancy. At this point they'll have (30) thirty days to respond and verify the information otherwise it's coming off!

So check for mistakes. In fact, recent studies show that at least 79% of credit reports have errors noted on them which once again begs the question:

Do you know your credit score?

If you have any question regarding inaccuracies in your credit report, or if you have questions on how to improve your FICO score in general, ASK ME here or call me directly at (323) 810-2175.

Mortgage Planner

Direct: (323) 810-2175 | Fax: (323) 223-0302

Check Daily Mortgage Rates: www.industry-report.com

Apply Online: www.ricardobueno.com

 


Comments (8)

Kathy McGraw
CELLing Realty - White Water, CA
Riverside County CA Real Estate
Ricardo- Good Info and good timing......I will be talking to you later :)
Feb 04, 2008 12:40 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Ricardo - This is so true, now more than ever.  Monitoring your credit is so important and now that everyone is entitle to 3 free report it is much easier to do.
Feb 04, 2008 02:20 PM
Ricardo Bueno
Diverse Solutions - Los Angeles, CA

Kathy: thank you! I'm sure I will be able to help. 

Jennifer: it certainly is very easy to do and it's recommendable to everyone; even if they're NOT in the market to refinance or purchase. Monitoring your credit is the best thing anyone can do to keep their financial household in order. 

Feb 04, 2008 02:37 PM
Harley Ramsey
Keller Williams - Chatsworth, CA
Chatsworth, CA Real Estate

Hi Ricardo,  79% of reports have errors on them...who knew?  I do now, thanks to you.  I'm meeting with a buyer client today who will be looking in the next few months...sounds like they should check their credit now!  Thanks for the useful information that helps me do a better job for my clients.  Cheers,  Harley

Feb 10, 2008 05:34 AM
Russ Higgins
Credit Justice Services - Memphis, TN
Credit Justice Services
Good stuff, Ricardo.  A better credit score will also help your insurance rates.  Be sure not to let the score drop or all of your credit cards could go up in apr by 10 percent or more.  Just look at recent news about Bank Of America.  Credit scores are more important now than ever before.  
Feb 10, 2008 01:55 PM
Charity Lane
O'Brien Realty - Prince Frederick, MD
Great points. You would be surprised how many homebuyers come and want to look at homes with me and have no idea what their credit reports look like. Sometimes it's not a good surprise. Just getting up another 20 points can sometimes make such a huge difference in their loan choices and monthly payments.
Feb 14, 2008 12:32 PM
Anonymous
CARLO VANDECI
HELLO, THATS IN PART TRUE, GET A GOOD CREDIT HISTORY HELP YOU TO LOW YOUR INTEREST LOANS, I FOUND A WEBSITE WHERE XPLAIN IN DETAIL TO HOW BUILD A GOOD CREDIT AND ERASE YOUR DEBTS IN THE PAST, http://www.come2shop.info/build-good-credit-history.html FOR SOME PEOPLE THIS COULD BE A GOOD WAY TO KNOW MORE ABOUT THE FINANCIAL WORLD
Feb 18, 2008 02:32 AM
#7
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Wow, it has actually gotten worse for errors on reports. At one time I worked for a credit card company and at that time in the mid-90's the errors on reports were only on about 50% of them. This really does tell people that they need to check their credit about 90 days prior to buying a home, so they can fix those errors and get the best rate they can!

Feb 23, 2008 04:43 PM