So you’re ready to take on a new mortgage and you’ve done your research. You have been educating yourself about credit scores, the credit process and how lenders evaluate credit for mortgage loan applications as you are getting ready to purchase a new home. And you know understanding your FICO® Scores is really important as they are the credit scores most commonly used in the mortgage loan review process.
The latest FICO® Score data brought with it some encouraging news about consumers’ FICO® Scores and credit health: a growing number of U.S consumers—19.9%—have FICO Scores of 800 or higher. That’s nearly one in five people with FICO Scores in the “exceptional” credit range.
With news of more people boasting 800+ FICO Scores, we thought now’s the perfect time to detail a few specific perks of having high scores.
When you’re focusing on improving your credit, every bit of credit activity is crucial. You’ve been tirelessly working to pay off debt and manage your credit responsibly. The last thing you need is for a hard inquiry to hit your credit report and potentially impact your FICO® Scores.
How important is your credit when it comes to getting approved for a mortgage? More important now than it has been in the last fifteen years. This according to a recent data analysis by economic policy group the Urban Institute, which found that an increasing share of home purchase loans are going to consumers with FICO® Scores greater than 750.
There are a lot of misconceptions out there about how credit scores are used and in what scenarios they are used. Employment? Nope. College admission? Nope. Insurance? Actually, yes.
When determining what rates to offer you, most auto insurance providers will pull an insurance score that is based on or considers a person’s credit history and credit scores.
It happens to the best of us and for so many different reasons: shopping addiction, unemployed, entrepreneur, medical issues, career advancement, college. Whatever your reason, you’re in debt and it’s stressful.
Paying off your debt doesn’t have to be a traumatic experience. With a little planning and organization, you can develop and stick to a reasonable, executable debt-management strategy. But before you start planning and making payments, make sure you understand these five key points.
If you’ve been juggling a monthly student loan payment with a credit card balance, you might have reasonably wondered at some point how exactly all that debt is affecting your credit. Debt obviously plays a significant role in your credit picture—how much of it you have and how you repay it are two major factors that affect your FICO® Scores, the credit scores used by 90% of top lenders. But how different types of loans and debt contribute to your scores isn’t readily apparent. Let’s clear up some of that confusion: Here are a couple important differences between how student loan debt and credit card debt can affect your credit.
When it comes to credit, some people prefer the ignorant bliss method: Don’t look at your credit, don’t worry about your credit, don’t even think about your credit. This method can actually be quite effective for several months or even years — that is until you’re thinking about buying a new home, leasing a new car, financing a new computer, or whatever else you’ve been dreaming up.
Here are some sobering statistics for anyone who recently graduated from college:
- 70% of students graduating with a bachelor’s degree are leaving school with student-loan debt
- The average class of 2014 graduate with student-loan debt owed $33,000—earning them the distinction of the most indebted class ever
- 2014 graduates face a 8.5% unemployment rate and 16.8 underemployment rate
In the credit card world, there’s really no better feeling than earning rewards for your spending. Who doesn’t like getting a little bonus for purchasing everyday expenses with some plastic?
But lost in the excitement of air miles, cash back, and gift cards is the fact that getting the most out of your credit card rewards requires some extra know-how and a bit of work. Want to squeeze every last drop of value out of that rewards card? Here are some tips.