Check Yes to Getting Your Credit Score!

Posted by Elizabeth on August 18, 2011

Purchasing a home is by far one of the biggest, if not the biggest, financial investments you will make in your life. That being said, it’s a good idea to get a credit check prior to starting the home buying process so you know what to expect. We have developed several tips for checking your credit score before purchasing your home. Best of luck!

• Request your credit report. You can go online to multiple sites to request your credit score. One place to start: the U.S. Federal Trade Commission suggests www.annualcreditreport.com, a secure site that’s supported by some of the leading credit bureaus. It’s important to request a 3-in-1 credit report so that you can see what has been reported by your creditors prior to applying for a mortgage. The report will also allow you to check for errors made by previous creditors.
• What is considered an acceptable credit score? Ideally, a credit score of 720 or higher is seen as a safe credit risk for lenders; anything in the 500 or under range is considered extremely poor. If your score is in the lower range, it is important to try to move your score near the 720 mark.
• What items can negatively affect your score? Late payments on loans and credit cards have the largest impact on your credit score. Additionally, criminal convictions and instances such as divorce can also lower your score.
• What can you do to improve your credit score? Using a small variety of credit accounts or credit cards for purchasing can help you establish a strong credit rating…as long as they are kept current and the balances are paid off monthly. The best thing you can do is to make sure all payments to merchants are paid in full and on time each month.