Today, most Orange County mortgage lenders and banks place a lot of weight on what type of a loan you can obtain, and what interest rate you will pay, based primarily on your credit rating. Your credit rating is boiled down to a simple number called your FICO score which is a complicated numerical analysis of your credit developed by a company called Fair Isaac & Company (FICO). The higher the number the better, and this score can range from 300 (F minus) to 850 (A++ perfect). Above 800 is considered to be excellent credit, 650 to 750 is fair to good credit, and below 650 is poor credit. The median credit rating nationwide is about 720. There are three major credit reporting agencies that most all lenders use and they are: Trans Union, Equifax and Experian.
In planning a road trip, the first thing in figuring out where you want to be, is to know where you are at. Likewise, the first step to improving your FICO score is to take a close and detailed look at your current credit report(s). You can get a copy of your credit from a lender who may have just run your credit, or obtain one free online at www.AnnualCreditReport.com First of all, make sure the basic information is accurate such as the spelling of your name, work address etc. Also make sure that your financial information is up-to-date. If you paid off a debt in full, make sure that is reflected in your credit report. Credit Bureaus also allow you to add an explanation to your credit report in order to explain what caused the financial misstep. This won't change your FICO score, but it may help a lender make a judgment call in your favor.
more »
