Since I am in the Real Estate business, my friends, clients, and acquaintances often ask me about how their credit score is figured out. This is really a question that should be asked to someone in the mortgage industry, but this following is what I understand.
Your credit score is also known as your FICO score. FICO stands for Fair Isaac Corporation who were responsible for developing credit bureau risk scores. FICO scores are used by lenders to determine the credit risk of a prospective borrower or existing client in order to make credit and marketing desicions.
Here is how your score is determined: 35% of your score depends on how timely your are with paying back your debts and loans. Another 30% consists of how much you owe to lenders versus how much open credit you have. This is called utilization rate. For example if you owe $1,000 in a credit card but your credit limit is $10,000 then you are in okay shape but if you owe $8,000 and your credit limit is $10,000 then your score will be lower. Another 15% of the score depends on how long your credit history is. Then, 10% of your score will depend on what kind of debts you have - i.e. mortgage, department stores, etc. and the last 10% is determined by how much new credit you are seeking.
There are three major credit reporting agencies where all this data is accumulated, analyzed, and ultimately your score is generated.
As a consumer, you have the right to request your credit information to see if the information they have on your credit is correct. These agencies are required by law to provide toll free lines, staffed with real people during normal business hours to handle any complaints and to provide reports that can be read and understood. These reports are also free of charge.
It is very important that you check your credit report periodically so that mistakes can be corrected on time.
The three agencies where you can order your credit report are:
Equifax 1-800-378-2732 and 800-685-1111
Trans Union 1-800-851-2674 and 800-916-8800
Experian 1-800-422-4879 and 800-392-1122
For more information go to myfico.com
You've heard that so many times and it is true. Location is the most important factor in real estate.
I am selling a wonderful split level home in the city of Sammamish. It is perfectly located within walking distance of the Plateau shopping center with restaurants, a gym, the Sammamish library, parks, and much more. It is within 2 to 3 miles to East Lake Sammamish Pkwy which connects to I-90 and 520. Redmond Town Center is approximately 6 miles from it. You don't find many houses in the Sammamish plateau for less than $500,000 and this one is! It is selling for $484,950.
Let me tell you about it. The new roof was installed about 2 years ago. It has new hardwood floors in the living room, dining room and stairs, the carpet in the bedrooms are new and the kitchen has been updated with new counters. All the light fixtures are new and a new deck has been recently installed. This charming split level sits on a 10,000+ sq.ft. lot with mature trees.
For more information, read
the listing.
But don't just take my word for it, come and see it. I will be holding an open house on Saturday February 24th from 1:00 pm to 4:00 pm and on Sunday February 25th from 11:00 am to 2:30 pm. See you there!!
As a special bonus to readers of my blog, mention that you read this post and I will you give a gift certificate to Starbucks.
November, 2006
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