What Makes Up My Credit Score?
If you are a home buyer in the Phoenix, Arizona area you will need to become familar with your credit score and how it impacts you.
In Arizona most lenders will use the FICO score developed by Fair Isaac Corp. to ascertain the level of risk you represent to a potential lender.
Lenders in the greater Phoenix area have become much picker recently about whom they lend to because of the large number of people that are simply walking away from their homes.
The FICO score ranges from 300-850. Each person has three FICO scores one from each credit bureaus, they are Experian, TransUnion, and Equifax.
Your credit score is based on information that each credit bureau has on you. Credit bureaus do not share their information with each other. Because they do not share information most people have three different credit scores and they can vary by as much as 100 points.
Today your credit score is based on these factors:
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Payment History = 35%
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Amount Owned = 30%
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Length of credit history = 15%
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New Credit = 10%
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Types of credit used = 10%
In the Phoenix Valley and in our current credit crisis situation you will need a minimum of 580 to qualify for any type of home loan. Generally in order to qualify for a prime loan you will need a credit score of 620 or better. Lenders consider anything over 720 as the most desirable type of borrower!
If you are thinking about buying a home in the Phoenix Valley and would like to know how to find out what your credit score is, or how to improve your credit score....please ask me!
Anne Eliason
480-235-8305
info@AnneEliason.com
Date: Thursday, January, 10th 2008 @ 10:38:46 AM
Views: 534
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