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Does a good credit score guarantee low interest rate?

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Caron Moderator Joined: 19 Jul 2005 Posts: 1519 Location: florida 281.04 Dollars($)	Posted: Fri Nov 04, 2005 2:57 am    Post subject: Does a good credit score guarantee low interest rate? Like 0 Dislike 0 Quote: Does a good credit score guarantee low interest rate? A good credit score increases your chances of getting a mortgage at a comparatively low rate. But this may vary from one lender to another because lenders rate you on the basis of your score and they follow various methods for rating borrowers. This is turn affects the mortgage rates charged on your loan. You may get a home loan even with a poor score but then you may be paying higher rates in return. So, in most cases the higher your score, the lower is the interest rate charged on the loan. When you have excellent credit, you can avail better mortgage rates. For instance, with a good score, lenders will rate you better and you may end up paying interest at 5.5% only for a long term fixed rate loan. But with scores below 650, you may be offered an interest rate 1% higher than the previous rate. With a high credit score, you can also get refinance loans or home equity loans at better rates. For instance, you can get a home equity loan at a rate of 7.911% if you have a score between 720 and 850. But for the same loan amount, a consumer with a credit score between 640 and 659 may have to accept a rate of about 9.486%. For a particular lender, a higher score will give you a low rate but if you consider a number of lenders, there's no guarantee as to whether you will get a low rate mortgage with a good score. This is because it is the lender who decides whether your score is "good" or "bad" and they differ in their standards of determining whether a score is better or worse. Related Article How do lenders rate you on the basis of credit score?
werty Guest	Posted: Fri Nov 04, 2005 3:29 am    Post subject: Fico Score Like 0 Dislike 0 What is FICO score?
Samantha Community Mentor Joined: 16 Sep 2005 Posts: 1609 Location: MASSACHUSETTS 150.97 Dollars($)	Posted: Fri Nov 04, 2005 3:47 am    Post subject: RE: Like 0 Dislike 0 Hi Werty Welcome to the MortgageFit Forums A FICO score is a credit score developed by Fair Isaac Corporation. It is helps to determine the credit repaying ability of a credit user. God Bless You, Thanks, Samantha
Richie Guest	Posted: Mon Nov 07, 2005 1:40 am    Post subject: Is fico score the only credit score? Like 0 Dislike 0 can u pls tell me if there is any other credit score apart from the fico score?
Caron Moderator Joined: 19 Jul 2005 Posts: 1519 Location: florida 281.04 Dollars($)	Posted: Mon Nov 07, 2005 2:22 am    Post subject: RE: Like 0 Dislike 0 Hi Richie, There is another credit score apart from the FICO score. This alternative credit score is based on a credit report offered by the PRBC Inc. under an agreement with the National Credit Report Association of the United States. Homebuyers can now avail another credit score if their FICO scores are low enough to qualify for loans at affordable rates. Know more about this score from the section on Alternative credit score Hope you will benefit from the information. Regards, Caron.
sunil87020 Joined: 04 May 2009 Posts: 339 26.96 Dollars($)	Posted: Sun May 24, 2009 9:49 am    Post subject: Like 0 Dislike 0 Both are working for homebuyer or any other things?
Realgeni Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)	Posted: Mon May 25, 2009 7:00 pm    Post subject: Like 0 Dislike 0 There are three agencies which track your credit and how you use it. 1.Experian 2. Trans Union 3. Equifax Your credit score is made up of your past history of payments, how long you have them and how you use them. 35% is made up of Payment history 30% Amoutn you owe 15% Length of history 10% New credit 10% Types of credit As you can see 65% is made up of Payment history and Amoutn you owe. If you continue to make payments on time and borrow less you will have a good score. But at the same time if you have not had any credit card ot had any loan, then that will not help you at all. Also types of credit will play 10% in this. So if you have credit card, Car loan and also departmental card, then it will help you to imrpove your score. But all this will not help, if you do nto make payment on time. So two things Make payment on time and borrow with in your limit.
Realgeni Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)	Posted: Mon May 25, 2009 7:02 pm    Post subject: Like 0 Dislike 0 Some mroe thigns to rememebr Lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting, in additon to your credit report and score. Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.
creditscoreup Joined: 24 Oct 2011 Posts: 3 1.67 Dollars($)	Posted: Mon Oct 24, 2011 6:40 pm    Post subject: Like 0 Dislike 0 Do the weightings change for different credit agancies? for example, if you miss a payemnt on a car loan does it have the same affect on your credit score for all the different agencies or do some treat different things as more important? Is there a minimum credit score required for someone (a single person) applying for a mortgage loan? What about refinancing? Does the minimum credit score change when you're refinancing your home rather than getting a new loan or second mortgage? _________________ Dont know a Reverse Mortgage for a Jumbo Loan? Ezloanguide.com has the answers you need.
smithsussane Joined: 18 Sep 2008 Posts: 10020 Location: Alaska 917.78 Dollars($)	Posted: Mon Oct 24, 2011 10:47 pm    Post subject: Like 0 Dislike 0 Hi creditscoreup! Welcome to forums! There can be slight differences in credit scores among the various credit bureaus. If you want an FHA loan, then you will require a credit score of around 600-620. However, if you want a conventional loan, then you will require a credit score of 700-720. It does not change when you're refinancing or taking out a new loan or second mortgage. Feel free to ask if you've further queries. Sussane
joshuaheckathorn Joined: 09 Feb 2010 Posts: 100 Location: Seattle, WA 17.85 Dollars($)	Posted: Tue Oct 25, 2011 9:47 am    Post subject: Like 0 Dislike 0 The only credit scores you should really care about are your FICO scores. You actually have 3 of them, but you only have access to your Equifax and TransUnion-based FICO scores. Provided that the information on your credit reports is exactly the same, your FICO scores should be the same as well. However, credit reports often included different information, which is why your FICO scores can vary depending upon which credit report they're based on. Talk to potential lenders to find out what FICO score you'll need to get approved for a mortgage. The number will fluctuate quite a bit depending upon which lender you're working with and the type of loan you're seeking. _________________ Creditnet.com: Compare the best credit cards and apply securely online.

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