The software used by most lenders to calculate credit scores was created by Fair Isaac Corporation -- FICO.
You have three FICO scores, one for each of the three credit bureaus Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. The three agencies don't necessarily use the same scoring software, so don't be surprised if you discover that the credit scores generated are different. Your three FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time.
Most important parts of a credit history:
- Your Payment History (35%) - Amounts You Owe (30%) - Length of Your Credit History (15%) - Types of Credit Used (10%) - New Credit (10%)
Credit scores (usually) range from 340 to 850. The higher your score, the less risk a lender believes you will be. As your score climbs, the interest rate you are offered will probably decline. Borrowers with a credit score over 700 are typically offered more financing options and better interest rates, but don't be discouraged if your scores are lower, because there's a mortgage product for nearly everyone.
If you have questions or are interested in buying or selling Real Estate in Winston-Salem, Lewisville, Clemmons and surrounding areas of Forsyth, Davie, Davidson, Yadkin and Guilford Counties of NC please feel free to email or call us at (336)413-0288.
Information contained herein is believed to be correct, but we assume no liability for its accurancy.
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