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FICO® Score… I keep hearing about it, but what is it?
Almost every person in the United States has a FICO score and should pay close attention to it. FICO scoring was created by Fair Isaac Corporation to help determine what the lending risk of a person is at any particular time in their life. As it relates to mortgages and home loans, your FICO score will assist lenders in determining what interest rate and loan programs you qualify for.
The following is important information you should know about FICO scores and your credit report:
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FICO scores range from 300-850 with a higher score being better then a lower score.
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Most lenders will use your FICO score as a factor in determining what interest rate you qualify for.
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Your FICO score is a snapshot of your credit worthiness at any given period of time and is always changing.
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Your payment history and amount of debt are the two most important factors in determining your FICO score.
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If you have a low FICO score now, you can raise it back up by paying off debt and reestablishing a good payment history.
Three Factors used to determine what loan program and interest rate you qualify for:
CREDIT INCOME EQUITY
Out of these three factors your Credit is typically the starting point for most lenders. A lender will run your credit, which in most cases will give them credit reports and FICO scores from all three national credit bureaus; Experian, Equifax, and TransUnion. Lenders will then take these three scores and use the middle FICO score to determine what loan category you fall into.
What if I have a "Low" FICO score?
If you have a low fico score it does not mean you do not qualify for a loan. There are other factors in the lending decision that can help you even if your FICO is low. Our Loan Officers are empowered to help you obtain a loan even if you have low FICO scores and put you on your way to a healthier credit future. Be sure to ask your loan officer about how a debt consolidation loan can help you improve your credit score.
Let us surprise you...
At Eagle Nationwide Mortgage Company we have the ability to work as a Bank and a Broker. This means we have access to hundreds of loan programs. No matter if your FICO is “low” or “high” there is a good chance we have a loan program that will work for you. Feel free to APPLY NOW or call us directly at 1-800-937-3307.
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