FICO scores, what they are and what they mean to you

Scoring your Credit - How's your FICO?
Wilmington NC Real Estate - EXIT Realty Wilmington NC
Search for Homes - Wilmington NC Home Listings

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

Credit History - How long have you had credit?
Payment History - Do you pay your bills on time?
Credit Card Balances - How much do you owe on how many accounts?
Credit Inquiries - How many times have you had your credit checked?

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 800, with higher being better. Typical home buyers likely find their scores falling between 600 and 800.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.

Wilmington NC Homes for Sale is our specialty at EXIT Realty Wilmington NC. EXIT Homeplace launched this specialized website for all Wilmington NC Real Estate. Our Realtors serve Wilmington NC, Leland NC, Wrightsville Beach NC, Carolina Beach NC, Kure Beach NC, Castle Hayne NC, Ogden NC, and every community in New Hanover County. Don't forget all the growth that is occurring across the Cape Fear in Brunswick County primarily in Leland NC, Belville NC, Shalotte NC, all the way to the beaches of Southport NC. EXIT Realty Wilmington NC and EXIT Homeplace Realty with 5 offices in Wilmington NC, Burgaw NC, Hampstead NC, Surf City NC, Jacksonville NC. With over 100 agents we serve all communities in Coastal Eastern North Carolina. Our websites cover all the listings all the time from Caper Fear to Camp Lejeune. EXIT Realty Agents choose to be the best because you deserve the best. List your house with our agents they will earn your trust and your respect. FREE HOME VALUATION!!!
EXIT Realty Jacksonville; EXIT Homeplace Realty; EXIT Realty Wilmington NC; EXIT Realty Burgaw NC; EXIT Realty New Bern NC; Join EXIT Realty; EXIT Real Estate Academy; Homeplace Realty Associates, Inc.;

Real Estate Wilmington NC