What About my Credit Score?

Wednesday, February 7th 2018

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If you are among the many who are interested in purchasing your first home, you may be wondering about your credit score. We can help you understand your credit score a little bit better!

First, let's discuss credit scores and how they are determined.

Creditors use a statistical formula to review the data in your files and compare it to credit performance of consumers with similar profiles. A credit scoring system awards points for each factor. The total of your points determines your credit score and gives lenders a prediction of how you may repay your loan.

The following factors are used to determine your credit score:

You can get a free Credit Report!

Your credit report contains personal information about where you live, how you pay your bills, whether you have been sued, arrested or filed for bankruptcy. This information is used to make decisions when you apply for credit, insurance, employment or a lease. It is important to review your credit report for accuracy. The three consumer credit reporting bureaus, Equifax, Experian and TransUnion, are each required to provide a free copy of your credit report once every 12 months at your request. Many financial advisors suggest that you stagger your requests over those 12 months so that you can monitor for accuracy and changes.

You could order your credit report by visiting www.annualcreditreport.com. There is no need to contact the companies individually because they use the same service to provide the free reports.

When requesting your free credit report, you will be asked to provide the following:

If you have moved within the past two years, you may be asked to provide your previous address. For security purposes, the company may also ask you a “secret” question that no one else would know.

Once you get your free report, let’s talk! We want to help you understand this part of purchasing your new home!