A FICO score, even if you don't really understand it, is really important when it comes to your credit and whether or not you can get a loan. Because of that, you need to learn whatever you can about it so you can make the necessary changes (if needed) to get the things that you want and need.
FICO, short for the Fair Isaac Corporation, debuted FICO scores as a standard to determine creditworthiness. These scores were made because there used to be many different scores, making it hard to determine how creditworthy someone is.
Your score is a three-digit number that helps to determine how likely you are to repay your loan. Both creditors and lenders will use this to determine whether or not you will qualify for a loan (or any type of credit card).
Your FICO score uses different categories to come up with your final score. These include:
Because your credit score can really affect your ability to get a loan, it is a good idea to monitor yours closely. However, that can affect your credit score so it is important to look at them regularly but not too much.
The best way to look at your FICO score is by using the Discover Credit Scorecard. You can use this, for free, whether or not you are a Discover cardholder. Many other credit cards, such as American Express, Citibank, Bank of America, and also offer a way for you to keep an eye on your credit scores.
Your scores are influenced by your credit information so there are ways to improve your score. These include:
Your FICO score has a lot of impact on a mortgage or any other loan. These include:
Even if you are able to get a loan, if your credit score is low, you may have to pay a higher interest rate in less time, making the loan too expensive for you to afford. Because of that, you really need to keep an eye on your scores and be careful with your credit so that you can get the loan that you need (at a price that you can afford) when you really need it!
Contact us for all of your mortgage loan needs. We will be glad to help you figure out what your FICO score is and how you can improve it (if you need to).
We are a direct lender and a broker who will work one on one with you to exceed your expectations. If we don’t have a product that makes the most sense for you, we’ll find the lender that does. We’ll make sure you have the best loan at the best price. Choose Lend Smart- it’s the smarter way of doing business.