One of the most important factors in determining credit scores is utilization. And by utilization, I mean the amount of credit you are using versus that which is available. For example, if you’ve got a credit card with a $10,000 credit limit, and a credit card balance of $5,000, you’d be utilizing 50%. While this… Continue reading Credit Card Balances and Credit Score
Foreclosure vs. Short Sale on Credit Score
If you’re having difficulty keeping up with mortgage payments, you may be wondering about the impact of a foreclosure vs. a short sale on your credit score. Well, first thing first, neither is welcome news for your credit score. Both are deemed major derogatory events, and will lower your credit score tremendously. Not only that,… Continue reading Foreclosure vs. Short Sale on Credit Score
620 Credit Score: The Subprime Cutoff
Let’s do this thing. It’s that special time when I look at a specific credit score, today a “620 credit score.” This is certainly a more common credit score, largely because it serves as a threshold for both creditors and borrowers, which I’ll explain shortly. As always, be sure to apply the proper credit score… Continue reading 620 Credit Score: The Subprime Cutoff
Credit Agency Glitch Drops Credit Scores
A glitch at credit reporting agency Experian put consumers in a panic after their credit scores plummeted temporarily. Apparently an undisclosed number of users who had subscribed to credit score monitoring services received credit score alerts regarding the drop in early April. After logging in to their accounts, users discovered they were over their credit… Continue reading Credit Agency Glitch Drops Credit Scores
What Does Your Credit Score Mean?
Credit score Q&A: “What does your credit score mean?” Put simply, a credit score summarizes and represents your credit history in numerical form. And your credit history measures the likelihood that you will become delinquent on a credit line in the future, which is the main issue prospective creditors are concerned about (because it costs… Continue reading What Does Your Credit Score Mean?
500 Credit Score: Yikes!
It’s Tuesday; time to take another in-depth look at a specific credit score. Today, it’s the infamous “500 credit score.” If you’ve got a 500 credit score, you’ve got a bad credit score. I hate to say it, but it’s valid. And this is true whether you are using the FICO score or VantageScore credit… Continue reading 500 Credit Score: Yikes!
FHA Minimum Credit Score
Recently, the FHA imposed a “minimum credit score” for FHA loans after sustaining serious losses during the latest housing crisis. In short, those with credit scores below 500 will no longer be able to qualify for an FHA loan. Period. End of story. And only borrowers with credit scores of 580 and above will be… Continue reading FHA Minimum Credit Score
650 Credit Score: Good Credit Is Within Reach
It’s that special time again, where I take an in-depth look at a very specific credit score. Today we’ll assess a “650 credit score.” Per usual, be sure to apply the associated credit score scale for proper evaluation. Otherwise you’re doing it wrong… Assuming it’s the much more popular and widely used Fico score, a… Continue reading 650 Credit Score: Good Credit Is Within Reach
What Credit Score Do You Need for a Mortgage?
Credit score Q&A: “What credit score do you need for a mortgage?” This is a more complicated question than it appears. You can’t just say, “Oh, you need an 800 credit score.” Or, “As long as you have a 700 credit score you’re fine.” Mortgages are complicated business, and because they’re offered from so many… Continue reading What Credit Score Do You Need for a Mortgage?
Annual Credit Score?
Think again. There is no “annual credit score.” Just an annual credit report furnished by the three major credit reporting agencies. They’re each willing to let you plant your eyes on a credit report for free once annually, but that’s about as far as they’ll go. If you want to see your credit score too,… Continue reading Annual Credit Score?