I have my free credit report, where can I see my credit score?
When you pull your free credit report, it can be hard to find your actual credit score. What you’ll see, usually, is your credit history. Then, either at the very top or very bottom of your report, depending on where you pull it from (Equifax, Transunion, Experian), you will find your credit score. It might be labeled as your FICO, Fair Isaac, or Beacon score and it will range from 350 up to about 850. Those three numbers are what represent your credit score. The national average right now is about 680. So, if your score is anywhere around that figure, you most likely have good credit and can apply and be approved for a loan. Many lenders actually allow for lower credit scores of 620 with some going down as far as the 530 range.
What is a credit score?
Your credit scores have a large impact on your interest rates and terms when applying for a loan or line of credit. A better (higher) credit score, delivers a lower interest rate, better terms, and a lower payment. A poorer (lower) credit score, delivers a higher interest rate, worse terms, and a higher payment.
Your credit score is created by looking at several factors in your credit history (your previous loans, credit cards, and other financial information). Ideally, you will always have your credit cards paid in full or at least under control and never have a late payment. This is the same for larger loans like an auto or home loan. The majority of your credit score is derived from how much debt you own and if you ever missed payments. No missed payments is what you want. Follow these simple rules and you will be a credit-worthy applicant for your next home or VA loan.
The credit score do’s
- Pay off credit cards every month
- Never miss payments on anything, especially home or auto loans
- Keep your credit card balance vs available credit below 75%
- Avoid too many credit cards (2-3 is more than enough)
The credit score don’ts
- Don’t make late payments
- Don’t carry a high balance on your credit cards (more than 75% of limit)
- Don’t apply for more credit if you can’t afford it
Keeping good credit and making great credit are easy as long as you follow the basic rules. Make a plan for your finances and make cuts in your budget if and where needed. The alternative could be costly debt that not only hurts your bank account but your credit as well. Remember, a good credit score can save you tens of thousands over a lifetime. And, if you are looking for a home or VA loan, a great credit score will give you the best rates available. This will mean lower payments and a more affordable lifestyle.
VA loans require the same credit reports and similar good credit scores in order for you to qualify for a VA home loan. If you are ready to take the next step, talk to Bobby or a member of his team about starting your home loan process. Contact VA Loan Spot or aks for a VA loan quote today.
Bobby Atkisson is a seasoned mortgage professional who provides high quality financial services to military members and veterans. With over 14 years experience in the lending and financial industry, his mission is to provide high quality mortgage programs with the most competitive interest rates. For expert advice and guidance on VA Home Loans and Refinance, contact Bobby today at 800-537-2050.