Potential Home Buyers - Test your FICO IQ
Potential Home Buyers: Learn how to boost your FICO'S and obtain the lowest possible interest rate for your real estate loan.
1. Closing accounts can boost your credit score.
False. While it's true that having too many open lines of credit can be damaging to a credit score, once a line of credit is established, closing it can actually lower scores. Credit scores compare the difference between available credit and the credit that's being utilized. Closing accounts lowers total available credit, making the credit balance appear larger than it actually is, and negatively impacting scores in the process. Scores also track credit history; closing older accounts can result in credit history appearing younger than it actually is, thus hurting scores.
2. You don’t have to use credit to get a good credit score.
False. Credit scoring formulas (FICO) are designed to gauge a consumer’s payment history and habits. If credit is never established, or the credit that is available isn’t occasionally used, it's difficult for the formula to make an assessment.
3. Checking your FICO score can negatively impact your credit.
False. While requesting a copy of your own credit report or credit score doesn't hurt, applying for new credit, however, can lower an individual’s score. To minimize the damage from credit inquiries when loan shopping, be certain that multiple inquiries are made over a short period of time. The FICO scoring model treats multiple inquiries in a 45-day period as only one inquiry.
4. A FICO score is the same at all three credit bureaus.
False. Experian, TransUnion, and Equifax all use the same formula developed by Fair Isaac Corporation, but they don't all share the same data when determining scores. One bureau may list certain accounts over others and these variances across the three bureaus result in three different credit scores. Due to these differences, it's wise to examine credit reports from each of the three bureaus before applying for a loan. Many lenders use the middle score from the three bureaus when making their decisions; repairing errors in all three reports prior to loan shopping may net you a lower interest rate.
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9/9/2008 9:04 PM
Los Angeles Real Estate Blog wrote:
........Once upon a time there was a dear little chicken named Chicken Little.One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.I had an interesting conversation yesterday with a potential home buyer. This ... -
9/10/2008 8:11 AM
Los Angeles Real Estate Blog wrote:
.....Once upon a time there was a dear little chicken named Chicken Little.One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. ... -
9/10/2008 8:15 AM
Los Angeles Real Estate Blog wrote:
.....Once upon a time there was a dear little chicken named Chicken Little.One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. ... -
9/10/2008 8:17 AM
Los Angeles Real Estate Blog wrote:
.....Once upon a time there was a dear little chicken named Chicken Little.One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. ... -
9/10/2008 8:18 AM
Los Angeles Real Estate Blog wrote:
.....Once upon a time there was a dear little chicken named Chicken Little.One morning as she was scratching in her garden, a pebble fell off the roof and hit her on the head. "Oh, dear me!" she cried, "the sky is falling. I must go and tell the King," and away she ran down the road.I had an interesting conversation yesterday with a potential home buyer. This buyer thinks he is unique because his credit is good and he has a larger down payment. ... -
2/10/2009 4:31 PM
Los Angeles Real Estate Blog wrote:
Is your datability score tied to your FICO? FICO scores range between 300 and 850. Are you considered an asset or a liability? *Over 750 - Excellent: You are highly desirable and constantly receive credit and dating solicitations*720 or more - Very Good: Depending on the lighting you could be a first draft pick*660 to 720 - Acceptable: If no one else is around you might be in the running*620 to 660 - Uncertain: If it’s late, you might get lucky*Less than 620 - Risky: Unlucky with money and with love – try credit repair or a gym ...
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