If you are thinking of applying for a loan, it will be a good idea to first check where you stand on the credit score scale. Why? Because knowing where you are on the scale can have a huge effect on the interest rates you’ll get.
People always hear about being pro-active in terms of their credit report. It is very important for every person to check his credit report at least once a year. This is because doing so will reveal any sort of reporting errors in the credit report that may have damaged one’s credit score.
Credit scores are calculated using mathematical equations the average American cannot understand. Heck, the way these equations are formulated is designed to be hopelessly incomprehensible to normal folk like you and me.
Each one of us has credit history profile data kept by each of the three major credit reporting bureaus which routinely collect and maintain vital information about your borrowing behavior, and use it to compile your credit report.
A lot of people are interchanging the term FICA score with FICO Score. Many people misspell and mix up FICA and FICO. But there’s a big difference between the two. Let me show you.
The Federal Trade Commission (FTC) and the Federal Reserve Board (FRB) have implemented new rules for consumer credit, wherein said consumers will receive a free credit score should the bank use it as a basis for various credit-related decisions.
Your credit score can either save you money or cost you money. According to myFICO, a 100 point difference in your FICO score could mean over $25,000 extra in interest payments over the life of a 30 year mortgage on a $300,000 home loan.
The Fair Credit Reporting Act (commonly referred to as the FCRA) is a US federal law which forms the base of consumer credit rights in the United States.
Your credit score has a huge impact on your loan application. It is a very important number lenders use to determine whether or not you’ll qualify for new credit, and at what interest rates and terms of credit. Those with the highest scores get the lowest interest rates.
Qualifying for a mortgage is getting more difficult in today’s recessionary economy. In many cases, a low credit score of 560 will prevent you from qualifying for the mortgage you want.