Your credit score is an extremely important and valuable asset. It can be used to determine everything from your rates on a home loan to whether or not you are accepted for an apartment rental or an employment opportunity.
So, what’s your credit score? First, a credit score is a three-digit number between 300 and 850; the higher the number the better. There are a lot of credit scoring models out there, but most follow a range of 300 to 850.
If you want to know how strong your credit is, you’ll need to know your credit score. You can find out by obtaining a free credit report. A credit score is calculated by using information that is contained in each of your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion.
While the average credit score sounds like a simple enough figure to pin down, it’s a little more complicated than you may realize. A higher number reflects more financial responsibility on your part. It is calculated based on how often you make credit payments on time, how much debt you carry relative to your credit limit, the length of your credit history, the types of credit you hold, and the numbers of inquiries on your record.
Credit is a necessary evil these days whether you like it or not. After recognizing that fact, your job is to maintain your credit report in order to obtain your financial objectives in life.
Keep your credit clean by avoiding late payments, maintaining a healthy number of credit accounts, and letting your timely payments build up over time. And, of course, you can always improve an average credit score by making all payments on-time, keeping debts low and adding new accounts as you can handle them.
These steps are a good start to be able to qualify for a great deal on a mortgage loan! Higher credit scores means better interest rates and better mortgage programs saving you tens of thousands of dollars or more during the time that you own your home. If you have questions please don’t hesitate to give us a call.
Contact a licensed housing specialist now! 602-429-6789