Posted by PBoone on April 18, 1999 at 11:53:05:
Credit Alphabet - Posted by Bert G
Posted by Bert G on April 18, 1999 at 11:36:12:
I keep seeing references to “A credit”, “C credit” etc. I can pretty much figure that A is perfect credit, but where do the others lie, and how does one determine that? I’m looking over the credit reports I’ve pulled on prospective tenants, and none of them have a letter grade, although a couple would probably be down around “Q”.
Also, how do I determine what to call my own credit? My report shows a couple late credit card payments, but other than that my payment record is excelent. My debt to income ratio sucks rocks.
Re: Credit Alphabet - Posted by Max W.
Posted by Max W. on April 18, 1999 at 14:25:29:
Credit grades are somewhat subjective. An A with one lender may be a B with another. Some lenders even use + / -. They all generally provide their grading criteria to mortgage brokers. You will not see a letter grade as part of a credit report. Credit scores such as BEACON and FICO are mathmatical models that determine a numerical value based on credit criteria. This seems to be a more quantitative way for lenders to evaluate a borrower. It is by no means a perfect system though and is controversial.
Learn what to look for in a report and the key questions to ask your rental applicants. Talk to rental agents and / or mortgage brokers in your area to see what they look for and how they evlauate a report. They will generally be willing to do this for the possibility of doing business with you and /or referrals.