Understanding Credit Scores - How Important is it to YOU?

Real Estate Agent with 1st Action Real Estate
6-16 credit reports

* AR Members

I recently participated in a Housing Preservation workshop with a representative of Springboard, a non-profit consumer credit management company headquartered in Riverside, CA. They produce a variety of excellent printed materials, Q & A's and seminars and wanted to pass along their contact information as well as well as a link to an excellent publication entitled 'What Makes Up Your Credit Score'. Available as a web read or PDF download, this booklet is a must-read for anybody thinking about buying a home and maximizing your credit score. For additional information, please read my article entitled 'More Scam Artists Trying to Take YOUR Money'.  

springboardUnderstanding Credit Scores
A credit score is derived from information in your credit report. Your credit report reflects how you have handled your available credit in the past, and your credit score predicts how likely you are to pay your bills in the future based on information in your credit report.

What is a Credit Score?

You have three credit scores, one from each national credit bureau, which are a measure of your financial responsibilityt, based on your credit history. The score most often used by lenders is the FICO score, developed by Fair Isaac Co. FICO scores range between 300 and 850, although other bureau ranges may be higher or lower.

How Does Your Score Affect Your Buying Power?

Most lenders will look at your FICO scores when evaluating your credit report or loan application. If your FICO score is 500 - 579, you may qualify for an interest rate of 9.5% with a monthly payment of $2,523. A FICO of 620 - 659 may qualify you for an interest rate of 6.77% and a monthly payment of $1,950 and a FICO score of 760 - 850 may qualify you for an interest rate of 5.43% and a monthly payment of $1,691. All estimates based on a $300,000 mortgage in California.

Monitor Your Own Credit Reports
Every individual is entitled to receive one FREE copy of their credit report each year. To obtain your report, go to www.annualcreditreport.com. Beware of imposter websites that are 'phishing' to steal your identity.

Gene Wunderlich - Selling Southwest California Homes including Temecula, Murrieta & The Southern California Wine Country
subscribe to my blog                    southwestcaliforniaghomes.com

Remember, Don't wait to buy real estate - Buy real estate and wait.

* This article is posted as a resource for clients specifically directed from www.SouthwestCaliforniaHomes.com. All information is reprinted from available public documents  with attribution or linked to other public or corporate websites as a service to my clients trying to find all this information in one place.


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
The Lounge at Active Rain
The Economics of Real Estate
Mortgage, Foreclosure & Elder Abuse Housing Fraud
Homeownership Preservation
credit scores
murrieta homes
temecula homes
southwest california
housing preservation

Spam prevention
Show All Comments
Greg Hampton
Re/Max Around The Mountains - Blue Ridge, GA
North Georgia Mountain Property,Blue Rid

Credit scores are so important! It only takes a couple of hits to drag you down.

Jun 17, 2008 12:53 PM #1
Tim Haight
Pinal Realty & Property Management LLC - Arizona City, AZ

I have found that many customers come into the office with no clue as to the importance of credit scores. They want to buy a house and will tell you that there might be a slight problem with their credit. It turns out that they have been late on every payment on their car for the last year or their three year old BK is actually only eithteen months old. They don't think you will have any one check.

Jun 17, 2008 12:54 PM #2
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY

Hi Gene;

Very important information for consumers. Good Luck!!


Jun 17, 2008 12:54 PM #3
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

This is great information for the consumers.  Great post!  Have a great evening.

Jun 17, 2008 01:00 PM #4
Gene Wunderlich
1st Action Real Estate - Murrieta, CA
Realtor & Legislative Liaison

Thanks - Feel free to follow the link and download this great document to give to your clients. Like you, I've found that most people don't know much about their credit scores - usually just enough to get them into trouble or make the susceptible to credit repair scams. As far as I can tell, these guys are legit and the information is worthwhile.

Jun 17, 2008 03:35 PM #5
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Gene Wunderlich

Realtor & Legislative Liaison
Ask me a question
Spam prevention

Additional Information