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Checking your credit score is a great way to stay on top of your financial health. Here’s a quick guide to stay on top of your credit, ensuring you find perfect funding for your perfect home.
You can check your credit score from one source and find that the score varies from place to place. Why? A few different scoring models exist that are used to calculate scores. There could be as much as a 50 point difference between sites because there are also three major bureaus that check against diverse criteria. Each method provides lenders with ranging information to give them a picture of what type of borrower you will be.
Many apps allow you to check your credit score. These let users see their scores and what they can do to improve that score. Most apps will give a simulated score, but not a full and in-depth report. You can check your full credit report at annualcreditreport.com. This is the only federally authorized site to pull your credit report from.
Each credit bureau handles the formula with differing techniques. Scores range from 300 to 850. They consider anything 700 and above to be a “good” credit score. You need at least a score of 600 to get loans in most cases. Remember, the higher your score, the better the interest rate will be.
Check at least once annually and right before you start the home-buying process. Taking a peek allows you to see where you stand. Checking your score regularly, even as simulated in apps, is a great way to avoid surprises and guide your strategy. Staying updated can also guide you in applying for the most appropriate loan for you.
Credit seems like a mystical topic. However, it can be straightforward if you know where to start. If you have questions about the financial aspects of your home-buying journey, check with your agent and/or financial specialists to clear up any murky areas before you apply for your loans.
