How To Repair Your Credit Before Applying for A Home Mortgage
February 2, 2012
Before understanding how to repair your credit, it's important to understand what your score is, and where it comes from. Your credit score is a 3 digit number lenders use to calculate your eligibility and rate for a home loan. But how is your credit score calculated? The formula takes into account your payment history, how much you owe, how long you've had credit, and how often you apply for new credit. There are several different credit score reporting agencies and each can have slightly different ranges. This is why it is important to take a look at 3 different credit reports in determining what your score range is. The following are examples of credit ranges and reporting agencies.
- The FICO score ranges from 300-850
- The VantageScore ranges from 501 - 990
- The Equifax credit scores range from 280 -850
- The Experian Plus ranges from 330-830
- The TransRisk score ranges from 350-850