Knowing
your credit score is
important whether you're
applying for a new
credit card, shopping
for auto loans or
considering a new
mortgage. Lenders use
credit scores to help
them decide if you are a
good credit risk. The
higher your credit
score, the more likely
it is that you'll
qualify for the best
rates around.
Until
recently, consumers
found it difficult to
find out their credit
scores. However, now you
can see your score in
seconds!
The
three major credit
bureaus,
Experian,
Equifax and
TransUnion
have similar scoring
models that generate
credit scores based
solely on their credit
report data on you.
There are also other
credit scoring models in
use, so your credit
score can be different
depending on which model
is used and on which
credit report your score
is based.
Additionally, if you are
working with a lender,
they should tell you the
reasons provided for a
low score if that score
is a factor in delaying
or denying your loan
application. A list of
"score reason codes"
comes with each credit
score report a lender
receives. The codes
explain the top reasons
your score was not
higher, such as too many
inquiries or delinquency
on accounts.
Did you
know you could get a
FREE credit score when
you order the 3 Bureau
Online Credit Report?
See all three of your
credit files in one,
simple report. Plus you
have the option to see
your credit scores based
on all three of your
reports.
Mortgage Glossary6
