Pensacola Mortgage Firm reports how credit scores can impact your mortgage or refinance rates, and what you can do to fix it.
FOR IMMEDIATE RELEASE
To put the low rates within reach, Pensacola mortgage lenders look for strong credit, good income and equity. The three work in conjunction to judge which refinance rate you qualify for. Although you may not have immediate control over salary and equity, you can do something about your credit score.
On NBC’s The Today Show segment titled “Is your credit score hurting refinancing?” we are given a few points on credit score basics:
• There is no “quick fix” for credit. Time plus good credit equals better FICOs.
• Don’t close old credit cards.
• Pay every bill before it is due. A single late payment can damage your credit score.
The segment also advises to stop worrying about whether rates have bottomed out. Refinance your Pensacola mortgage today if it makes good financial sense. If rates fall in the future, you are still able to refinance again in the future.
MyFICO.com has recently published some common financial issues and how certain actions can impact your score.
Maxing Out a Credit Card:
• Initial Score of 780: 25-45 point drop
• Initial Score of 680: 10-30 point drop
A 30-day Delinquency:
• Initial Score of 780: 90-110 point drop
• Initial Score of 680: 60-80 point drop
• Initial Score of 780: 140-160 point drop
• Initial Score of 680: 85-105 point drop
Since credit scores are meant to predict a loan default, the higher your score, the more a financial problem can drop your FICO. Financial advisors point out that you should be using 10-30% of your available credit, and if you’re considering a mortgage or refinance you should avoid opening new credit accounts.
Since improving your credit score is something that you can begin today, you should make the decision to talk to your Pensacola Mortgage broker not only to start the process, but to seek out advice on how to obtain the target credit score you need in order to secure the best rates available in today’s market.