A good credit score may not be good enough

With your credit score being the life line of lending decisions one might consider the repercussions of a bad credit score. With more and more financial institutions on the brink of disaster because of all the bad loans, you can rest assure that your credit score is more important than ever. The whole reason behind a credit score is to give the probability of you paying back a debt. The technology to acquire your credit risk is very precise these days. With this being said I will further discuss what all you might consider other than just needing a good credit score.

What is considered a good credit score now?
In the past all you needed was a 580 middle fico score to get a mortgage. Now with all the banks failing and loans coming back to the banks the bar has been raised. Currently for some banks depending on the loan type all you need is a 580 credit score, but not everyone with a 580 credit score can get a loan. It really depends on your circumstances. To be honest with you a 580 credit score is considered high risk to most lenders. If you want to get the best rates and terms you need a 720 plus credit score. The best advice I can give you is to pull a recent copy of your credit report with credit scores to see where you stand. If you know you have credit issues, the best antidote is to start fixing the problems. Here is a link to work on credit report errors.

Sometimes high credit scores are not good enough.
This might sound crazy, but if you have a high credit score that does not mean you will get approved for any loan out there. You could have a high credit score on your credit report but be shallow in credit history. In other words you have some credit but not long credit history. So with this being said, don’t assume just because your credit score is high you will get approved. In most cases this type of situation applies to young people or anyone that is just starting the credit building process.


Having a good credit score with savings.
The way matters are going in the current financial sector you can count on the stakes being higher for the borrower. In other words you may have a great credit score but will be required to put down money and have savings in your bank. The reason for this is if you run into a problem you will have the money to hopefully stay a float and also have a personal stake in the transaction. This could be the case with car loans and home loans.


With the advice being giving in this article, make sure you are on top of your credit report and you have savings for a rainy day.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Short Sale Credit Rating Q & A

Q: Hello. I am wondering what a Short Sale will do to my credit report? I have two properties and can't pay for one of them anymore.

Janice Ann Monaco


A: Hi Janice,
Yes, a short sale will affect your credit rating. Typically when you come to a agreement with the bank on short sale you stop making mortgage payments, in most cases once you have a 120 day late payment on your credit report with your mortgage company, HUD and most lenders consider that a foreclosure. If you can sell the property fairly quickly in this market and avoid those late payments it can be beneficial. In most cases I don’t see the advantage for the homeowner. I personally think the only person it benefits is the realtors pocketbook.

Mike Clover
CreditScoreQuick.com

CreditScoreQuick.com your resource for free credit report repair, credit reports, credit cards, and loans.

credit score affected by title Q & A

Hello,
I came across your website, thank goodness for it. If you don't mind answering a question I would certainly appreciate a response, whose credit score would be affected if someone forecloses a house. Is it the mortgagee's or the title holder's or both? The person's name on the title is not the same person as in the mortgage contract. Would both be affected from the foreclosure?
I look forward to your reply.
Thank you,
Lago from Michigan



Hi Lago,
The person that is on the mortgage is the only person's credit score that will be affected. If there is a person only on title that individual credit will not be affected what so ever. Typically individuals that have there social security number attached to a debt is what reports to all 3 credit bureaus, not someone that holds title.

Hope this helps.
CreditScoreQuick.com

Your resource for free credit reports, credit cards, and credit advice.

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