Understanding Credit Scores - How Important is it to YOU?

By
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
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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.


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Groups:
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The Lounge at Active Rain
The Economics of Real Estate
Mortgage, Foreclosure & Elder Abuse Housing Fraud
Homeownership Preservation
Tags:
credit scores
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springboard
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temecula homes
temecula
murrieta homes
murrieta
southwest california

Comments 5 New Comment

Rainer
41,833
Greg Hampton
North Georgia Mountain Property,Blue Rid
Re/Max Around The Mountains

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

June 17, 2008 07:53 PM
Rainer
29,063
Tim Haight
Broker/Owner
Pinal Realty & Property Management LLC

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.

June 17, 2008 07:54 PM
Rainmaker
807,358
Anthony Stokes-Pereira
Realtor
Better Homes and Gardens Rand Realty

Hi Gene;

Very important information for consumers. Good Luck!!

Anthony

June 17, 2008 07:54 PM
Rainmaker
162,126
Lorinda Ward
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach
Keffer Realty

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

June 17, 2008 08:00 PM
Rainmaker
224,999
Gene Wunderlich
Realtor & Legislative Liaison
1st Action Real Estate

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.

June 17, 2008 10:35 PM
Rainmaker
224,999

Gene Wunderlich

Realtor & Legislative Liaison
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