Recently we wrote an article about getting ready to apply for a mortgage. And a question came up from a reader that caught me off guard “What is a Credit Score?” and then the next question that sprang up was “why is it so important?” Well I found this video from CreditDVD, which does an excellent job both explaining What is a Credit Score and why it is important to all consumers wishing to use credit to fund their purchase.
The video is a bit cheeky, but it explains in very basic details how your credit score will affect your ability to purchase with credit. Your credit score can range from 300 to 900. Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax, Transunion, and Experian. Basically your credit score is determined by a formula that is calculated that is proprietary information and owned by Fair Isaac. It takes into consideration:
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Your past payment history
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Your outstanding debt
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length of time you have had credit
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number of inquiries
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and the types of credit you currently have
Don’t know what your credit score is? Get a free copy of your credit report here.
Are you ready to purchase a new home and want to explore your options? Call us today so we can assist you in the process of getting pre-approved for a mortgage. Call us today at (716) 650-0051 or fill out the form below.
