Credit Scores, Credit affects, and Home Buying

Credit scores basically give an assessment of potential borrower’s riskiness. Complex equations based on the distinctiveness of thousands of consumers provide statistical analysis, representing how companies give particular borrower’s credit scores. 

Unfortunately many consumers fail to understand that non-credit factors do not help determine scores.  With the sub-prime mortgage market implosion and the high rate of foreclosures, people with low credit scores may not qualify for a mortgage. A credit score of 700 or lower might mean they will not qualify for a lower interest mortgage.

Credit scores can also affect a consumer’s access to different credits as well as insurance, telephone services, rental properties and even employment.  

Obviously, it is best to not do things that would lower scores in the first place. Steps can be taken to increase credit scores, but it will not happen overnight.  “Credit repair companies” have had some success increasing scores even if only slightly.  Contact a Realtor who is familiar with credit scoring and how to increase scores.

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