Tips for Building Your Credit Score

Your credit score will play a large role in getting your home loan, which means that paying attention to it and working to build it can be valuable. Your credit score will be used to determine your financial trustworthiness, and even if you aren’t thinking about buying a house right now, it can take time and planning to build it. Team Lasson has a few tips to help you make sure that you are working for the benefit of your credit score!

Watch Your Card Balances

One of the biggest things that you will want to watch is that you keep your credit card balances low. One of the major factors in determining your credit score is how much of that available credit you’re actually using. A good rule of thumb is the smaller the percentage the better, and an ideal percentage would be around 30% or lower. Another tip is to see if your credit card issuer will accept multiple payments throughout the month in order to get that statement balance down.

Consolidate Credit Card Debt

If you have multiple cards with small balances on each one, a good way that you can aim to improve your credit score is to get rid of those balances completely. An interesting factor that plays a role in determining your credit score is simply how many cards you have with balances.

Keep Your Credit Looking Strong

Two issues that can sink your credit or cause you to look risky are missing payments or suddenly paying less or charging more than you normally do. These actions can indicate risk in your accounts and could make it more challenging for your loan to go through. Essentially, you want every purchase to show that you are not going to be a risky investment and that you will pay the money back with timely payments.

Keep Accounts Open and Don’t Open New Ones

Did you know that closing unused credit cards will not raise your score? In fact, in most cases, it can cause your utilization rate to dramatically increase. On the other hand, you don’t want to open many new accounts while you are in the process of raising your credit score as this could reduce your utilization rate and backfire on you. Just keep a slow and steady pace and know that every step you take in the right direction will help get you there.

Pay Bills On Time

When planning to purchase a home at Lake of the Ozarks, you may be saving up money, but don’t let that savings spree delay your monthly expenses. It’s important to continue to pay your bills on time, as paying them after the due date can affect your credit score. Remember that even if you have a large sum of money in savings, a drop in your credit score due to not paying your bills on time could cause issues with your home purchase.

In general, building your credit score is about fixing errors in your credit history and then maintaining a consistent, good credit history from there on out. Raising your credit score will take patience and discipline, but it will all be worth it when you get to buy a dream home at Lake of the Ozarks. If you're thinking about applying for a home loan at Lake of the Ozarks anytime soon, contact me at 573-746-7211. As your Lake of the Ozarks mortgage lender, I'll work with you every step of the way!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Understanding Your FICO Score

When applying for a mortgage loan at the Lake of the Ozarks, the lender needs to determine how likely it is that you will make your payments. How does a lender do this? The FICO Score is the credit score most lenders use to determine your credit risk. In today's blog, your Lake of the Ozarks mortgage lender helps you understand what this number means.

What is a FICO Score? 

FICO Scores are the most widely used credit scores. They are a type of credit score created by the Fair Isaac Corporation. The Fair Isaac Corporation is a company specializing in "predictive analytics," meaning they take information and analyze it to predict what's likely to happen. While they do create credit scores, FICO itself is not a credit reporting agency. They use information provided by Equifax, Experian or TransUnion. The FICO Score, along with other details, is used to assess credit risk and help lenders determine whether or not to extend credit.

How is a FICO Score Determined? 

FICO Scores range from 300 to 850. In general, scores above 650 indicate good credit, while those below 620 indicate bad credit. The score takes into account information from 5 different areas, each weighed differently:

• Payment History - 35%
• Current Level of Indebtedness - 30%
• Types of Credit Used - 10%
• Length of Credit History - 15%
• New Credit Accounts - 10% 

The importance of any one of these factors is also determined by the overall information on your credit report. For example, if you haven't been using credit very long, your score will be factored differently than those with a longer credit history. 

Understanding a FICO Score

The first thing a mortgage lender at the Lake of the Ozarks wants to know is whether or not you've paid past credit accounts on time. Next important is how much you currently owe. However, having credit accounts and owing money on them doesn't necessarily mean you are a high-risk borrower. The length of your credit history also plays an important role in establishing your FICO Score. In general, a longer credit history will increase your FICO Score. Your credit history takes into account how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average of all your accounts. Credit history also looks at how long specific accounts have been established and how long it's been since you used certain accounts. The next step is to look at what types of credit you have, including credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. New credit accounts will also come into play. Research shows that opening several credit card accounts in a short period of time represents greater risk. 

Your FICO Score is not only used to determine whether or not you'll be approved for a home loan at the Lake of the Ozarks, but also to determine what interest rate will be offered to you. If you are concerned about your FICO score and how it will affect your chances at a mortgage, talk to the best mortgage professional at the Lake of the Ozarks. I'm here to help you every step of the way, from your pre-approval all the way to closing on your dream home at the Lake! Give me a call at 573-746-7211.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

13 Interesting Facts About Credit Scores

Credit scores are a common topic in the mortgage industry. In today's blog, your favorite mortgage lender at the Lake of the Ozarks offers a few interesting facts about credit scores. Keep reading to see if you've heard any of these fun facts before.

1. The widely used FICO (Fair Isaac Corporation) score is based on the work of engineer Bill Fair and mathematician Earl Isaac, who founded the firm in 1956. They developed the first credit bureau-based scoring system in the mid-1980s.

2. Credit scoring got a huge boost in 1995 when the U.S.’s two largest mortgage-finance agencies, Fannie Mae and Freddie Mac, recommended lenders use FICO credit scores. Their recommendation carried enormous weight in the home loan industry.

3. Some variation of the FICO score is used in 19 countries outside the U.S.

4. The “Great Recession” had a significant impact on the credit-scoring world. More people fell into the lower brackets: 25% had scores under 600 in October 2010, compared to 15% in 2006.

5. To get the highest possible credit scores, a person needs both revolving debts, such as credit cards, and installment debts, such as mortgages or auto loans.

6. The average American has 13 credit accounts showing on their credit report, including 9 credit cards and 4 installment loans.

7. Most Americans use less than 30% of their available credit limits. Only 1 in 6 uses 80% or more.

8. Maxing out credit cards damages credit scores by 10 to 45 points.

9. About half of Americans don’t have a single late payment on their credit reports. However, approximately 4 in 10 have been 60 days or more overdue in the past 7 years.  

10. Over 144 million people, or 2/3 of American adults, haven’t looked at their credit report in the last year. Over 1/3 of Americans adults admit that they do not know their credit score.

11. There's an online dating service out there called CreditScoreDating.com for those that are concerned with the financial situation of their potential mate.

12. The Bangladesh-based Grameen Bank uses gender in its credit scoring model and mostly lends to women. As of December, 2015, the bank had 8.81 million borrowers, 97% of whom were women. To them, women are seen as more responsible borrowers than men.

13. More than 8 million people fall victim to identity theft in the U.S. each year. Consumers spend hundreds of millions of hours trying to resolve the problem, stop the fraud, and clear up their credit reports.

When it comes time to secure a mortgage at the Lake of the Ozarks, your credit score is an important factor. There are a number of programs available to help borrowers better their credit score. A solid credit score lends to more financing options when preparing to buy a home. For more information on how your Lake of the Ozarks mortgage lender can help you purchase your dream home, give me a call at 573-746-7211.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

7 Things You Should Know About Credit Scores

One of the main factors in determining your eligibility for a mortgage loan at the Lake of the Ozarks is your credit score. While most people may know what a credit score is, they don't necessarily understand how they work. In today's blog, your favorite Lake of the Ozarks mortgage lender offers a few things you should know about credit scores.

1. Your Credit Report Is Different From Your Credit Score. 

Your credit report includes details of your credit accounts, how often you apply for credit, debt collection accounts, etc. Your credit score is a 3 digit number that is figured based on those details of your credit report. 

2. You Have More Than Just One Credit Score.

There are 3 different major credit bureaus, Equifax, TransUnion and Experian. Each bureau uses a different approach to determine your credit score. As a result, you have 3 different credit reports, with multiple credit scores. When a mortgage lender at the Lake of the Ozarks pulls your credit report, they will be provided with 3 credit scores, one from each bureau. 

3. Your Credit Scores Are Based On 5 Core Factors.  

Your credit score is based on the following factors: payment history, credit utilization, average credit age, account mix and inquiries. These factors are listed in order of importance, and therefore your payment history has the largest affect on your credit score.

4. Credit Scores Are Used For A Variety of Things.

Credit scores are factored into a lot of different situations. While your score can affect insurance costs and employment, the most common situations where credit comes into play is when you are applying for a home loan at the Lake of the Ozarks.

5. Not Everyone Has a Credit Score.

If you've never applied for or used credit, you won't have a credit history and therefore, won't have a credit score. Not having any credit history can make it just as hard to obtain a mortgage as having a low credit score because the lender doesn't have any facts to base whether or not you can pay back your loan on.

6. Checking Your Own Credit Will Not Impact Your Score.  

You've probably heard that checking your credit can have a negative impact on your credit score. While there may be some truth behind that, checking your score yourself will not hurt your score. However, hard inquiries, like when a lender pulls your score for a loan or credit card, can have a negative impact on your score. Luckily, the effect is small and temporary.

7. You Can Always Improve Your Credit Score.

Just because you have a low credit score and maybe you can't get approved for a loan right now, doesn't mean it'll be that way forever. There are a variety of things you can do to improve your credit score over time. Check out our blog titled, "7 Tips for Building Your Credit Score."

If you have more questions about your credit score and how it can affect your Lake of the Ozarks mortgage approval, give me a call at 573-746-7211. I'm here to answer your questions and help you with all your financing needs. I'm committed to working with you every step of the way, for a smooth mortgage process!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Credit Scores that Lenders Use

Your credit score is a number that influences the amount of credit that is available to you. When it comes to taking out a loan, your credit score is a vital factor in the terms your Lake of the Ozarks mortgage lender will offer you.  When you apply for credit, whether it be a credit card, car loan or home loan at the Lake of the Ozarks, lenders want to know the risk they will be taking by loaning money to you. A credit score is a number that summarizes your credit risk and helps the lender evaluate your credit report. "FICO Scores" are the most commonly used credit scores among lenders. Beware of those companies offering you a free credit score online because the majority of them are not true FICO scores and can vary a lot.

FICO Scores  

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

What Makes a Good FICO Score

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 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com