What’s a Good Credit Score?April 30, 2013
Your credit score is a figure that is used by lenders to determine the risk of an individual defaulting on a line of credit, and it’s a number that’s in a state of constant calculation, though most of us only think about our credit score when we’re thinking about opening a new line of credit or making a life change where our financial history comes under scrutiny. Credit scores can range from 340 to 850, but most of us don’t actually understand what that number means or what our credit standing is until our credit score helps or hinders our goals for the future.
Before you begin the search for a home, know your credit score and what options are available to you before you query a lender. Good credit scores are generally considered to fall within the 660-850 range. The higher the number, the less of a risk a lender takes in doing business with you. Individuals with higher credit scores (700+) will find easier paths to loan pre-qualifications and approvals, as well as more financing options and lower interest rates. Before you start the process of a home search, request copies of your credit reports to find out where you stand and you’ll make the task of buying a new home that much easier.