Your goal needs to be a credit score of 800 or more! I heard from someone in Charlotte this week who was laid off last year. Her score is in the high 500’s… not close to her goal!
Fortunately, there’s a new program from FHA that might help the lady in Charlotte. If you were out of work for a period of at lest 6 months, and you lost at least 20% of your annual income – FHA has a program that only requires you to wait 12 months after a major Credit Disaster (like a foreclosure, short sale, bankruptcy) to buy another house!
Because your credit report is a snapshot of your credit at a particular moment in time, new information is constantly flowing to your unique report. Literally every credit action you take to apply for credit, make a payment, change your address, or an inquiry from a prospective creditor will impact your score.
Your credit score, however, is technically not a part of your credit report. The report details the transactions and history of your credit. The score is essentially a by-product of the report. A Credit Score gives a potential creditor the ability to make a quick decision about their credit risk in extending credit to you.
If you request a copy of your credit report from Equifax, TransUnion or Experian they will NOT include your score OR an analysis of the factors affecting your score. Because there are different scores for Insurance, revolving debt, student loans – and they each have their own scoring models – the reports that you get directly from the agencies do not include a score. To get your MORTGAGE credit score, you’ll need to talk to a loan officer. We can help peek at your score, and we can give you an analysis of what it will take to get your scores higher.
Remember – your score is a reflection of what has happened on your report in the last 90 and an estimate of what you might do with credit in the next six months – BASED ON A COMPARISON TO OTHER PEOPLE WITH A SIMILAR REPORT.
As we get further into this slow recovery, the models that make up credit score requirements will continue to change. THIS MEANS YOUR SCORE COULD GO DOWN, even if you have not changed any of your habits. This is why we think EVERYONE should understand how their credit report, and their credit score works!
If you want more information about your credit, contact Steve and Eleanor Thorne, we help folks everyday who want to improve Fico scores so they can buy a house in NC 919-649-5058. We have the best mortgage rates in Cary, and Apex Mortgage Rates too!