Your Credit Score
January 11th, 2008 Posted in Mortgage UpdatesYour Credit Score
When you obtain any kind of credit or loan, the lender reports your repayment history to the major credit bureaus. This information forms the core of an individual’s credit report and credit score, and is what lenders analyze when deciding whether or not to extend new credit.
Your credit score is a variable number that can fluctuate as the items on your credit report change. Different factors have a positive or negative affect on a score. For example, your total debt, the number and types of credit accounts, number and severity of late payments-if any- and how long the accounts have been open all impact a credit score.
The federal Fair Credit Reporting Act (FCRA) allows positive information to be listed in your credit history indefinitely, although it is generally removed after ten years. Accurate negative information such as late payments (also known as “derogs” or “dings”) may remain on your credit report for up to ten years, and unpaid tax liens remain for fifteen years. Any change to your credit report could change your score.
If you would like to purchase a home, but believe your credit scores may be too “low”, please give me a call. Home Mortgage Choices has many programs for borrowers with low credit scores, including the 12 Weeks to Homeownership program where we can help you set up a budget, get educated about the home buying process, and remove any items on your credit report that are incorrect.
Katie Mahoney
Senior Loan Officer
Home Mortgage Choices,
A division of Guaranty Bank
(843) 345-7009 direct
Posted by Paige Pollock
