The most widely used credit score is one created by Fair Isaac Corporation. Lenders use this score to help them make billions of credit decisions each and every year. The FICO score is based solely on information in consumer credit reports maintained at the credit reporting agencies. These scores range from 300 to 850 and is calculated by a mathematical equation that evaluates many types of information from your credit report. By comparing this number to the patterns of hundreds of thousands of past credit reports, the FICO Score is able to estimate your level of future credit risk.
For more information on understanding FICO Scores visit: http://www.myfico.com
When it comes to the FICO Score, the higher the score, the lower the risk. However, no single score can tell you whether a specific candidate will be a "good" or "bad" customer. While many mortgage lenders at the Lake of the Ozarks use the FICO score to help them make a lending decision, each lender has their own strategy. There is no single "cutoff" score number that says you will or won't get a loan. Many other factors go into determining your actual interest rates. Along with your credit score, the credit reporting agency will provide up to five reasons of why your score is what it is.
For information on how to improve your FICO Score visit: http://www.myfico.com
Calculating FICO Scores
In order to calculate your FICO Score, there has to be enough information regarding your credit. Generally, you must have at least one credit account that has been open for at least six months and at least one account that has some recent activity (within the last six months) that's been reported to the agency. You will actually have 3 different FICO Scores, one for each of the credit bureaus: Equifax, TransUnion and Experian. Each score is based on the information that the respective bureau has for you, meaning that each of these numbers can differ. As your credit information changes over the years, so will your current credit score. Therefore the FICO Score you got a month ago is probably not the same score a lender would get from the credit reporting agency today.
For more information on how credit scores can change visit: http://www.myfico.com
Although the FICO Score is an important factor when determining your Lake of the Ozarks interest rates, lenders will not base their decision on this number solely. If you have more questions on your credit score or about qualifying for a mortgage loan at the Lake of the Ozarks, give Michael Lasson a call at 573-746-7211. When it comes to your financing needs, he's committed to working with you every step of the way!
For Lake area news, resources and tips on financial services, please
Sr. Residential Mortgage Lender
NMLS #: 493712
2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049