What You Should Know About Managing a Quality Credit Score
Your credit score is vital on getting the Interest rate you desire! When you are considering to buy a home, refinance, etc. then a credit pull will be done. There are 3 credit reporting agencies that typically be pulled. They are the following:
Experian (formally TRW):
About FICO Scores
The most widely used credit score system is the FICO score, the credit score created by Fair Isaac Corporation. The base FICO scores have a 300-850 score range. The higher the score will typically get you the better interest rate.
Credit Card Debt and Limit
What typically influences your credit score is credit card debt and the limit. For example if you credit card has a 10k limit and your balance is 9,900.00, this can affect your credit score.
Other influences that affect credit scores is how many times your credit has been pulled. It is minimal however, but don’t have your credit pulled too many times during the loan process. Others are how old your credit lines have been established, and liens, etc.. Bottom line, as long as you make your payments on time, your credit score should be relatively healthy.
When you are in the midst of getting a loan, DO NOT purchase a big purchase like a car for example. This can/will influence your debt-to-income ratio and may cause your loan to be disqualified or your rate may go up!