Posted by Charlie on March 06, 2002 at 08:02:34:
I don’t think your credit score is on a regular credit report. It may be on a mortgage credit report. Go to equifax’s web site and for about $10 they will send you your credit score with an explaination. I did it and was suprised to find out my score is 785.
Someone please share a little knowledge with me. - Posted by Dan
Posted by Dan on March 04, 2002 at 17:38:37:
What is a good credit score? What is a bad score? How do you find your score? I have a copy of my credit report, however, I cannot find a credit score anywhere. How important is the credit score when trying to secure different types of financing. I know that I have good credit because I have no late pays in five years. I am twenty three. I have been on the job for almost three years. My wife and I have a combined income that allowed us to qualify for a 110k mortgage. We have even made some extra payments on the house since we moved in 1 yr. ago.
Everyone says find the deals and the money will come. I guess I’m curious if anyone is really going to lend me money with no previous experience. All my REI knowledge is stuff I read in lots of different books.
Do I have a chance? I believe that I can do it.
thanks,
Dan
Re: Someone please share… - Posted by Mike Grohowski
Posted by Mike Grohowski on March 05, 2002 at 12:42:58:
Credit Scores
A lot has been written on this subject and I could probably write 5 pages worth now if this was the forum to have lengthy converstaions.
Many of the credit reports you get as a consumer from the credit agencies won’t have the score on them. You have to buy there next level up “product” to get the report with the credit scores on them. I don’t know which of the products you bought from which agency or company so I am not sure if the report you have even has the number. Each company formats it differently so its tough to even tell you where to look.
Most people credit scores range between 550 and 800. 840/850 is the max anything below 500 is considered very bad and most lenders won’t even look at the person.
I would recommend people check their credit reports at least once a year.
As a professional in the industry I see many credit reports and often they have mistakes or old information on them.
Credit scores are probably one of the top 2 things in determining if you can get a loan and which route you go in the process.
My company lends to people with all kinds of FICO scores but always keep in mind, the lower it is the higher your rate.
The better the FICO is the less money you will need to put down and the better your rate.
620 is a major cutoff point. Anything below that and you start getting into Subprime loans which basically means
more down will usually be needed and higher rates.
Between 620 and 680 ==> this is considered decent and you can get most programs and products with reasonable amount of money
down and solid rates. This is where most people fit in at.
Above 680 - 740 area and you are considered pretty solid.
Anything above 740 and you can do anything you want…
The above descriptions are basic but hopefully you get the point.
Always keep in mind though a good mortgage broker can bypass most credit score issues.
Also remember that the credit score is just 1 of the factors of the entire process.
It is important as it will determine which route you must go and what other areas have to be stronger (i.e… assets, down payment, etc).
In terms of experience in RE Deals - that is a minor issue - don’t sweat it.
Re: Someone please share a little knowledge (long) - Posted by Bruce Lawson
Posted by Bruce Lawson on March 04, 2002 at 18:03:42:
Hi Dan,
To obtain your credit scores you can simply log onto all three credit reporting companies websites, and for a charge of ~$12.95 they will supply you with your score along with some interesting statistics about where you are in reference to the remaining credit using citizens in this great country. Their addresses are www.equifax.com, www.transunion.com, and www.experian.com they all have links to getting your credit score.
A good score would be 650 and above although a score of 620 will put the consumer in the conforming range that will get better interest rates.
Our society is totally score driven with out a decent score ~620 or above you will find it harder to obtain traditional financing, therefore, your scores are very important. Deals do happen even for people with less than perfect credit there are always ways of financing that is the beauty of creative financing.
Do you and your wife a favor take a look at your credit reports you can never be unaware of what information is being reported on your reports, you may think everything should be fine until you go for that loan for a deal you found and bingo errors on your credit report.
Dan this is a great site with tons of information from many of very experienced investors you can find an answer to any question you have right here.
Sincerely,
Bruce Lawson
Bruce - Posted by dan
Posted by dan on March 04, 2002 at 18:33:55:
I have a copy of my credit report but i can’t find the score. How might the heading be abbreviated?
thanks,
dan