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Your Good
Credit - Part 1
Good credit in four easy steps starts this month with the first in a
four part series on polishing your credit and keeping it in good
shape.
There was a time when getting a loan was easy. You simply walked into
your neighborhood bank and asked the person sitting behind the desk,
who may have been a personal friend. It was easy. They knew you and
probably your whole family. They also knew how good a credit risk you
were. All you had to do was shake hands and sign a piece of paper.
Things have become much more complicated. That friendly face is now a
computer whirring out numbers and your number may not be what you
think it is. If you're purchasing a home, your credit report is an
important part of you getting the mortgage you want.
So, what is a credit report? It's a report that contains information
about your spending habits and payment history. This is especially
important when you are preparing to purchase property. Those numbers
could make the difference in your rate and whether you even qualify
for a loan.
As of last year, you are now entitled to a free copy of your credit
report from each of the three major bureaus, Equifax, Experian and
TransUnion. Others can and will charge for the information or will
require that you subscribe to a service. You can get your report on
line but it will be easier if you simply print out the form and mail
it in with the appropriate information. Be patient. It takes time, but
it is well worth the effort.
When you do get your credit report, you'll notice it does not contain
the final score which can run from 300 to 900. You'll have to pay for
that, unless you are applying for a mortgage. The loan officer must
provide this upon request. If you choose to get the information ahead
of your loan application, it's best to purchase your FICO score (Fair
Isaac Corp.).
Every major lender will use this score to assess how deserving you are
of their credit. This score will fluctuate depending on your current
spending habits.
However, the elements taken into consideration are, (1) your past
payment history, (2) your outstanding debt, (3) the length of your
credit history, (4) types of credit, and (5) any new application for
credit.
In a future month, we'll discuss what steps you must take if there is
something amiss on your report.
Copyright 2006 PropertySource Network |
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Jeannie Hamilton
ABR, CRS, e-PRO, GREEN, GRI, SRES
Broker/Owner
Hamilton Properties
1100 Deer Trail Road
Boulder, CO 80302-9437
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Office: |
303-443-9221 |
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Cell: |
303-817-9988 |
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Fax: |
888-449-3611 |
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Toll Free: |
800-443-9212 |
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Email: |
jeannie@jeannierealtor.com |
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Email
webmaster@jeannierealtor.com with
questions or comments about this website.
Copyright © 2012 Jeannie Hamilton, Inc
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Last Updated:
January 24, 2012
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