Mortgage Help   Mortgage Rates Real Estate Credit Foreclosure Tax
	Mortgage Basics Credit Scores Loan Programs: 1031 Exchange Financing 125% Loan 1% Loans Auto Loan Adjustable Rate Mortgage (ARM) Assumption Mortgage Bad Credit Loan Bi-Weekly Loan Blanket Loan Boat Loan Business Loan College Loan Condominium Mortgage Conforming Loan Commercial Loan Cash out Loan Debt Consolidation FHA Loan Hard Money Loan Home Equity Loan Home Improvement Loan Interest Only Loan Investment Property Loan Jumbo Loan Land Loan Land Contracts Lease/Option Financing Mobile Home Loan Manufactured Home Loan No Documentation Loans No Cost Refinance Negative Amortization Loan Participation Loan Personal Loan Payday Loan Purchase Loan Refinance Loan Reverse Mortgage Streamline Refinancing Seller Carryback Stated Income Loan Subject To Finance Self Employed Loan Timeshare Loan TownHouse Mortgage VA Loan Wraparound Mortgage 2nd Mortgage 80-10-10 Loan 80-15-5 Loan 80-20 Loan Credit scoring has been around since the 50's.Today the use of credit scores has become increasingly important in obtaining any type of loan. When financing a house, a car or even obtaining a credit card, credit bureau scoring is a scientific way of assessing how likely a borrower is to repay a loan. Each of the three major credit reporting agencies utilize the same scoring models developed by the California based company Fair Isaac Company (FICO), yet each company can give you a different score. Each of the bureaus believes some credit characteristics to be more important than others. Credit scores can range form a low of 300 to over 800. Many people believe that credit scores are only based on whether or not you pay your bills on time. Scores are actually based on a complex system analyzing different characteristics of your credit, such as: Payment history, including any collections, judgments, foreclosures and/or bankruptcies. The number of inquiries into your credit report in the past 6-12 months. A large number of inquiries can indicate that you have been trying to obtain too much credit too quickly. The amount of outstanding balances compared to your available credit limits. A borrower with $4,995 on credit cards and loans with $5,000 in credit limits will be penalized. Even if the payment history has been perfect. How long accounts have been open. The longer that you have had good credit the better. These are only a few of the over 30 different factors used in determining your score. None of the 3 major bureaus have been required to divulge their formula for determining these scores. However, they must still abide by the Fair Credit Reporting Act and they do not consider the following: National origin, race, marital status, gender and religion. The amount of money you might have in the bank. Banks and lenders are not required to disclose your credit score to you. However, I will and you should always ask. I will also provide you with a copy of your credit report upon request. If your credit score is low, there are no quick fixes. But there are some things to keep in mind when trying to maintain a high credit score: Periodically keep tabs on your credit report for inaccuracies. You can obtain a copy from each of the Major Credit Reporting agencies. Reports are usually free, but can cost as much as $8.00. Pay all your bills on time. Use credit wisely. Use only the credit you need and can afford to pay. Don't max out your credit cards. Don't apply for or open many credit accounts in a short period of time. Don't try to change a score overnight by suddenly closing or opening accounts. This could backfire. Remember, a low credit score does not mean you will not be able to obtain a loan. Credit scoring is just one part of the process. It is important, but so are things like your employment history, your savings pattern, and your down payment. Below are links to information regarding credit and credit scoring. Fannie Mae - www.fanniemae.com  Freddie Mac - www.freddiemac.com  Fair Credit Reporting Act - www.ftc.gov  For more information about Credit Reporting Agencies you can contact them directly. Equifax 800-685-1111 www.equifax.com       Experian 888-397-3742 www.experian.com   Trans Union 800-916-8800 www.transunion.com