When looking for a mortgage or to refinance your home, you will be asked about your credit scores. Your credit score may affect your mortgage rates, credit card approvals, apartment requests, or even your job application. There are three FREE trusted credit reports:
- and TransUnion.
The Annual Credit Report (www.AnnualCreditReport.com) offers free credit reports authorized by Federal Law. Go to the website to request a credit report from one or all three credit report companies.
FICO Is About To Change Credit Scores. Here’s Why It Matters
In February of 2020, we posted about the fact that FICO was about to change credit scores. And offered a review of the NPR article “FICO Is About To Change Credit Scores. Here’s Why It Matters” by Chris Arnold.
Credit scores for many Americans are about to change — even if they don’t do anything. The changes will be extensive. About 40 million Americans are likely to see their credit scores drop by 20 points or more, and an equal number should go up by as much, according to Joanne Gaskin, vice president of scores and analytics at FICO, the company at the heart of the credit scoring system.
When FICO updates the way it determines credit scores, millions of Americans will see a change in their credit score – it could drop by as much as 20 points or go up. FICO’s changes will be directly impacting personal loans. When the changes take place they will not immediately affect those seeking a mortgage, however, the article shares some very useful information and the impact will eventually hit mortgages. excerpt: “home mortgages, lenders tend to use older versions of the FICO score, so the new version won’t have an impact on all types of lending.”
“home mortgages, lenders tend to use older versions of the FICO score, so the new version won’t have an impact on all types of lending.”Excerpt from the article. Read the full article “FICO Is About To Change Credit Scores. Here’s Why It Matters”.
A great 3-minute audio on this topic – listen below.
Credit Score Infographic
Breaking Down Your Credit Score Infographic By MGIC
Embedded from MGIC Connects
The MGIC’s mortgage infographic, Breaking Down Credit Score, guides you on how the FICO credit score is calculated and reveals credit-related facts like the average national credit score.