Credit Score is Key When Applying for a Mortgage

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The difference between a ‘good’ and a ‘bad’ credit score could cost you thousands in loan interest

Your credit score comes from several pieces of information about you, including whether you make payments on time and how much you spend.

Nowadays just about everyone, from landlords to lenders, judges you based on your credit score. In part because credit companies, like banks, have been so inundated during the past few years, far too many of us have mistakes buried deep within our credit reports.

If you happen to be one of those unlucky folks, mistakes made by the credit company may be costing you hard earned money. For example, the difference between a 698 and a 700 credit score on a $150,000 mortgage could cost you $10,000.00 in extra interest.

Because your credit score is so important to your wallet and your prosperity, Congress passed the Credit Accountability, Responsibility Disclosure Act (CARD) in 2009, but not many consumers are even aware of it. Now you have the legal right to get your credit report FOR FREE at www.annualcreditreport.com. And, when you report a mistake, the credit companies are legally required to promptly fix it.

“… consumers should check their credit reports regularly. If they don’t they are potentially putting their pocketbooks at risk.” – Howard Shelanski, Director of the FTC’s Bureau of Economics

Practice reviewing your credit report at the same time you file your tax returns each year as a simple way to remind yourself to do it.

 

Source: “Credit score is key when applying for a mortgage,” Florida Realtors®