If you are planning to buy a home, or if you need to refinance your current mortgage, take a look at your credit score first. Unless your credit history is spotless, your most likely won't qualify for the lowest mortgage rates.
Whats your score? You are entitled to one free credit report each year from the three major credit agencys. Get your credit report and check it carefully for any inaccuracies, or problems. You may request other reports that include your FiCO credit score.
How is a FICO score calculated? According to Fair Isaac, the follow factors go into creating your credit score:
- Payment History: 35%
- How much owed: 30%
- Length of credit history: 15%
- Applictions for new credit: 10%
- Types of credit used: 10%
Clean up your credit, or face paying much more in interest rates than those people who have bad credit. If you need help, contact a reputable Credit Repair agency such as Lexington Law. IN most cases, they have the experience and resources to help you repair your credit score faster than you may do on your own.
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