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Jim and Ila

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Serving Home Buyers and Sellers in the Cities of
 

The 3 C's

of Credit

Capacity

The amount of income a person has to make payments on loans

Collateral

The assets a person has that can be used as security for repayment of the loan.

Character

The honest, truthful, moral and ethical qualities a person has shown by their past conduct.
 What Your FICO Score Means
The credit score formula was created by the Fair Isaacs Corporation in 1969. FICO scores are issued by national credit-reporting agencies like Equifax, TransUnion, Experian, etc. There are three scores reported and usually the middle score is the one used. Your score will be a number between 300 and 850 and was calculated from your past credit history. Your FICO score is a major factor in obtaining a home loan. A low FICO score does not mean you won't get a loan and a high score does not mean you will get a loan.

Five Weighted Factors Determine Your FICO Score

Payment History - 35 percent. Payment history includes credit cards, retail accounts, installment loans, mortgages.
Amounts Owed - 30 percent. How many accounts have balances and how much of the total credit line is being used on credit cards and other revolving credit accounts.
Length of Credit History - 15 percent.
New Credit - 10 percent. Applying for too much new credit is one of the easiest ways for people to harm their credit score.
Types of Credit in Use - 10 percent. This includes the variety of your installment loans, mortgages, retail accounts, credit cards and finance company accounts.
Score
 
Above 800
760 to 799
720 to 759
680 to 699
660 to 679
620 to 659
500 to 600
Below 500
 
Odds of paying 90+ Days Late
 
1 out of 1,292
1 out of 597
1 out of 323
1 out of 123
1 out of 55
1 out of 26
1 out of 8
Live with Mom!

Don't be Discouraged

Think your credit score is too low? The good news is you can improve it and you don't need to pay money to a credit "fixer" to do it. By taking time to improve your credit score, you may qualify for a more favorable interest rate.
 
Your score is nothing more than a "snapshot" of your credit at a particular time. It changes as new information is added to your bank and credit bureau files. Past credit problems impact your score less as time goes on. A few changes can result in a 20-point improvement in a few days. DO NOT cancel credit cards or close accounts to improve your credit score. It will have the opposite effect.
 
We work with mortgage loan consultants who share our desire to help people move from a rented home to one they can eventually own.
8 Ways to Protect Your Score During Escrow
  1. Don't quit or change jobs.
  2. Don't purchase a car or boat.
  3. Don't make large furniture or appliance purchases.
  4. Don't open or close lines of credit.
  5. Don't run up credit card bills.
  6. Don't become delinquent on rent or mortgage payments.
  7. Don't spend savings or retirement funds.
  8. Don't make large deposits or withdrawals from your accounts.

(951) 833-7967
Lic. #00161585
Serving the Area Since 1958
(909) 261-3541
Lic. #01486397
'Getting You Where
You Want to Be'
1570 W. Foothill
Upland, CA 91786
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For Home Market Activity, Home Sales Charts by Zip Code, City Links and Information, Public Schools, and Local Crime Statistics, Click on City Links:
Chino
Rancho Cucamonga
 
 
 
 
 
 

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