What you need to know about your credit

Posted by on Mar 4, 2016 in North Park, San Diego, Selling Homes, Uncategorized

What you need to know about your credit
Are you wondering what your credit score is? How will it affect your home purchase or when you sell your home and buy? Call Chris Spade to navigate you through the process @ 619-320-5467

Are you wondering what your credit score is? How will it affect your home purchase or when you sell your home and buy? Call Chris Spade to navigate you through the process @ 619-320-5467

For some people, your credit score is a badge of honor and yet for others, it’s something they’d like to run scared from.

The truth is, in order to get anywhere in this life, whether it be buying a car, renting an apartment, getting a credit card or buying a house, credit is what’s going to determine a lot.

So who or what is FICO?  Well, it stands for Fair Issac Corporation  Sounds weird, right, I thought so.  Now that we know what it is let’s talk about what your credit score is based on.

Credit bureaus actually look at four things when they decide a value to put on your score.

  1. Credit History-How long have you had credit
  2. History of Payments-Do you make late payments
  3. Balances on your credit cards-how much revolving debt are you carrying
  4. Inquiries on your credit-How many times have you had your credit checked for a loan.

Your FICO score greatly affects your interest rate

The worse your FICO score the higher your interest rate.  Lenders always favor people with higher FICO scores with lower interest rates.

Raising your credit score

Before you run out and pay someone to fix your credit score– there are a lot of things that you can do for FREE.  First, you need to remove any incorrect data on your report.  Typically, you have to report it to the credit bureau and there is a set amount of time where the creditor must respond.  If they don’t, it must be removed.  Second, from time to time, check in on your credit.  That’s about the only quick fix things you can do.  It will save you money, it will just cost you some time.

How do I find out my FICO score?

There are several ways you can find out your credit score.  You can go to myFico.com or creditkarma.com – Both sites will give you a good idea on what your score is.  You can also get a free annual credit report from annualcreditreport.com– you won’t be able to get a free credit score but you will be able to get the report.

If you have questions about buying a home, selling a home or investing in real estate or are having credit challenges, call Chris Spade @ 619-320-5467.  We are here to help!

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