Credit

Discover how Your Credit Score is Determined

• Credit Score: 

Your credit score or FICO (Fair Isaacs Credit Organization) is a ranking of your credit worthiness.  Scores range from 300 (low) to 950 (high).  The score is based on an individual’s credit information, which is gathered by the three national credit bureaus.  Your creditors, including banks, credit unions, credit card companies, collection agencies, etc. provide your payment history information to these agencies.  Occasionally, creditors make mistakes in their reporting, making it very important to periodically verify that your credit information is accurate.  Usually, the higher your credit score, the better your home loan terms will be. 

• Checking your Credit Report: 

You can check your credit report by contacting Equifax Information Services LLC.  Phone 877/Score-11

• Credit Suggestions: 

Your credit score is affected the most by recent late payments, especially in the case of repeated late pay.  A number of high outstanding balances also indicate increased risk.  Finance company debt affects your score more than a credit card.  Keep your number of credit cards to two or three.  More than that affects your score, even if your balances are current or even zero.  Having multiple credit cards equates to increased available risk.