Credit Scores: They Are Important?
When it comes to getting any kind of credit (not just a mortgage), often times whether or not you can get a loan will come down to how good your credit score is. If you have a great credit score, lenders are excited to loan you money. If your credit score is just so-so? It may be difficult to get a loan. And as a result of the recent credit crisis, if you have a less-than-perfect credit score, it can be very difficult to get a loan.
What is a Good Credit Score?
It used to be that any credit score higher than a 680 was considered a “great” credit score. This isn’t really the case in today’s economy, due to the number of foreclosures over the last few years, banks have raised their credit guidelines and now a great credit score may be considered a 750 or maybe even higher. The truth is, what is considered a “great” credit score may also vary by lender. Some lenders may consider a 740 a great credit score while others may consider a 760 to be the cutoff for a great credit score.
Higher Credit Score = More Available Programs
Regardless of what lender considers what credit score to be “great” one common theme holds true with pretty much all lenders: the higher your credit score, the more loan programs are available for you to choose from. It is common for a lender to have tens or even hundreds of loan programs and each loan program will typically have a minimum credit score in order to qualify. So the higher your score, the more programs will be available to you.
Monitor Your Credit Score
There are programs available where you can monitor your credit score so that you can see your score rise or fall based on activity. Credit monitoring programs are also a good way for you to keep an eye out for Identity Theft – because you can be alerted if anyone opens an account with your name and info. Getting started with a credit monitoring program is easy and most companies will provide a free copy of your credit scores when you sign up for credit monitoring.
Regardless of what your credit score is, it is important to be aware of what it is so you can speak intelligently with lenders about what loan programs are available for your situation. It is also a great idea to monitor your credit so you can track your progress and protect your identity – because few things are more costly and time consuming than having your identity stolen.