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Lisa VanDeBoe | 352-634-0129 | Crystal River FL Homes for SaleLisa VanDeBoe | 352-634-0129 | Crystal River FL Homes for Sale

Plantation Realty INC

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WHAT’S A FICO®?

What is a FICO® Score?

FICO® stands for Fair Isaac & Company and is the name for the most well known credit scoring system, used by Experian. The credit bureau’s computer evaluates a complete credit profile and assigns a score, which is used to estimate credit worthiness. Each of the three bureaus (Experian, Trans Union, Equifax) employs its own scoring system, so a given person will usually have 3 separate scores. Someone with a higher score will be viewed as a better risk than someone with a lower score. Typically, scores will range from about 600 to 700 or above, although some cases will be outside this range.

What Kind of Score Do I Need for a Home Loan?

There are as many answers to this question as there are loan programs available. Most lenders will take the average of all 3 scores to evaluate an application. Niche loans, such as Easy Qualifier and low down payment loans will have higher FICO® requirements.

How is My Score Determined?

The FICO® model has 5 main elements:

  1. Past payment history (about 35% of score) The fewer the late payments the better. Recent late payments will have a much greater impact than a very old Bankruptcy with perfect credit since.
    Myth – paying off cards with recent late payments will fix things. Payoffs do not affect payment history.
  2. Credit use (about 30% of score) Low balances across several cards is better than the same balance concentrated on a few cards used closer to maximums. Too many cards can bring down the score, but closing accounts can often do more harm than good if the entire profile is not considered. BE CAREFUL WHEN CLOSING ACCOUNTS!
  3. Length of credit history (15% of score) The longer accounts have been open the better for the score. Opening new accounts and closing seasoned accounts can bring down a score a great deal.
  4. Types of credit used (10% of score) Finance company accounts score lower than bank or department store accounts.
  5. Inquiries (10% of score) Multiple inquiries can be a risk if several cards are applied for or other accounts are close to maxed out. Multiple mortgage or car inquiries within a 14 day period are counted as one inquiry.

How Can I Raise My Score

Your score can only be changed by the way that item is reported directly to the credit bureaus (Experian, TU, Equifax). Written confirmation from the creditor is required. It is best to make these corrections before you try to purchase a home, because you can never be sure the exact impact a change will have on your score.

What Does This Mean to Me?

You should have your credit reviewed BEFORE you look for a home, and work with a PROFESSIONAL loan officer to make sure your loan is based on the most accurate information.

Posted in: Blog Tagged: Mortgage Information, Resources

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Plantation Realty Inc.

Crystal River

1250 N. Country Club Dr.
Crystal River, FL 34429
352-634-0129
Contact Us

Citrus Hills

918 E Norvell Bryant Hwy
Hernando, FL 34442
352-423-1424
Contact Us

Plantation Realty Inc. | Crystal River: 352-795-0784 | Contact Us

1250 N. Country Club Dr. – Crystal River, FL 34429

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ADA Compliance: In concurrence with the National Association of Realtors guidelines, The PLANTATION REALTY INC and it's affiliates are committed to providing an accessible website. If you have difficulty accessing content, have difficulty viewing a file on the website, or notice any accessibility problems, please contact us at 352-795-0784 to specify the nature of the accessibility issue and any assistive technology you use. We strive to provide the content you need in the format you require.

© 2020 Citrus County Board of Realtors. All rights reserved. Information deemed to be reliable but not guaranteed. The data relating to real estate for sale on this website comes from Citrus County Board of Realtors and the Broker Reciprocity Program.sm. Real estate listings held by brokerage firms other than Plantation Realty Inc. are marked with the BR logo and detailed information about them includes the name of the listing brokers. All measurements and all calculations of area (i.e., Sq Ft and Acreage) are approximate. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Information last updated on 2020-04-01 17:30:04.

ADA Compliance: In concurrence with the National Association of Realtors guidelines, The Plantation Realty Inc and it's affiliates are committed to providing an accessible website. If you have difficulty accessing content, have difficulty viewing a file on the website, or notice any accessibility problems, please contact us at 352-795-0784 to specify the nature of the accessibility issue and any assistive technology you use. We strive to provide the content you need in the format you require.

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