Parenting Tips Articles
May / June 2005

WHAT'S IN A SCORE?……….ALOT!
Stacey O'Brien

A good credit history is more important than ever. Solid credit keeps down the cost of consumer financing, and it can be the deciding factor in whether an auto or home loan application is approved.

In today's fast-paced, high-tech age, your credit history will be reviewed more often by artificial intelligence than human intelligence. This computerization has mad the loan process much more efficient. That's a good thing. But computers take all the subjectivity out of credit evaluation, and that means you have to take ownership of your own credit standing to make sure you're not blindsided by any stain on your record.

It is important that everyone know their credit. You are entitled to one free credit report a year. Various companies, including Experian Consumer Relations (888-397-3742), can show you your credit profile. Frequently, erroneous information appears on a credit report. This can take a few months to correct, which might mean the difference between being able to purchase your dream home or not.

Credit scores usually range between 400 on the low side to 800 on the high side. On rare occasions these ranges can be exceeded. Sometimes a score cannot be obtained for factors like lack of credit history or too few lines of credit.

If you know your score, then you can see what the creditors see and have the ability to get a jump-start. Here is a quick breakdown of what a score means to a creditor:

720 and over  Wonderful, you are at the top. Best rates and terms.
700 - 719      Excellent score. You are a very desirable borrower.
680 - 699      Good credit. You should be in strong shape to buy.
660 - 679      Okay credit. Don't look for other exceptions.
640 - 659      Borderline. Okay if everything else is strong.
620 - 639      Weak. The rest of your file must be perfect.
600 - 619      Difficult. Needs some work or a special program.
Below 600     Trouble. Try to fix up your credit. (see below)

If your score needs help, look on www.Familiesonthego.org to find out ways to fix your credit score.

If after reviewing your credit report you have questions, or would like to know what type of mortgage you might qualify for, please feel free to call my office at 813-655-3463. Don't let the opportunity of home ownership pass you by. Stacey O'Brien is a Senior Loan Officer with Avenya Mortgage

*Excerpts from Mortgage Coach 2005