Credit scores can be a real mystery to some folks. Your FICO Scores consider both positive and negative information in your credit report. Late payments will lower your FICO Scores, but establishing or re-establishing a good track record of making payments on time will raise your score. Here is how our credit scores break down. (from myFico.com)
You can get obtain a free credit report yearly without hurting your credit. Know that the scores you run on free credit report sites such as freecreditreport.com or creditkarma.com, may be slightly different than those that a lender will run. Running your credit report and learning your score from a trusted lender is your first step to home ownership.
Okay… so now you know your score… what is considered a poor, fair, good or excellent score? Lenders will have different interest rates and loan program qualifications for different scores, and many will require a minimum of an average score to get into a loan. But don’t fret if your score is less than average. We have helped guide our clients to programs to help get credit cleaned up. See the information below about what is considered “Good” Credit and how long will negative information linger on your credit report (from Buffini).
Contact Us to get you connected with a trustworthy Arizona lender. Our lenders can also help guide you to cleaning up your credit. Your home purchase depends on it!