Credit ScoresCredit scores are critically important for a consumer who is applying for any type of financing into today’s financial climate. Mortgage loans, auto loans, personal loans and credit cards will all review a borrowers credit score and payment history in making a determination whether or not they should lend to the borrower. Credit scores can range between 350 and 850. The average credit score for a consumer in the United States is approximately 670. A lender will review your credit score and in a number of financing scenarios this will impact the amount of money you qualify to borrow as well as your interest rates. Mortgage lenders will often be required to increase your interest rates or closing fees if your credit scores falls under a certain number. Lenders are essentially passing on to the borrower a portion of the risk based pricing that is forced onto them from agency lenders such as Fannie Mae and Freddie Mac, who all dictate that a lender has to charge additional fees or price bumps based on your credit score and loan to value. . If your credit score is above a 740 then you are able to avoid almost any additional adjustment due to credit score. If you fall below a 680 score, you are likely to have a challenge in applying for most consumer loans in today’s credit markets. Lenders are increasingly choosing to only lend money to borrowers who have credit scores well above 700 and have no history of bankruptcy or foreclosures. Your credit score is affected by your payment history, any public record items such as bankruptcy or collection accounts, and your available spending limit on your revolving accounts. It is probably a good idea to check your credit score prior to applying for a loan.
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Rates, News & Advice Articles
September 1, 2010
The stock market got into rally mode today to start the month of September with a bang. Surging by over 200 points in heavy trading as investors rallied into equity positions. The strong rally in the DOW follows a steady decline of the DOW in the past 60 days as the “double dip” recession...
August 27, 2010
The stock market finally caught a relief rally on Friday, as the DOW jumped well over 100 points on optimism from a reassuring speech from Fed Chairman Ben Bernanke. The DOW was able to get back above the 10,000 point market as investors took advantage of lower equity prices across the board on the market....
August 23, 2010
The markets strong start lost momentum over the course of trading on Monday and the market ended up dropping nearly forty points in trading. The dip follows a swing of nearly 100 points in light trading on Monday as investors pulled back when he market was up nearly fifty points when the market opened...
August 19, 2010
Jobs are certainly the largest component to any economy and has the potential to drive markets sharply. Today, we witnessed another example of the fallout from the employment sector as unemployment claims jumped to their highest levels in the last nine months, news that quickly led to a dramatic sell-off...