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Scoring your Credit - How's your FICO?
“What’s your Mid-Score?”
This is typically the third question you are going to be asked while a loan officer tries to provide you with a quick interest rate quote over the telephone. The first two questions often are; “How much do you need to borrow” and “What is your home worth these days?”
All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. Therefore, you will typically have 3 distinctly different scores. Mortgage lenders will use the middle of the 3 values as the “decision score.” That is the “Mid-Score” the loan officer is looking for. Armed with that and a few more pieces of information, your loan counselor can confidently quote you a rate and fee structure based on current market conditions.
- How can Palomar Bancorp help me?
- Can I improve my credit score to help me qualify for a loan?
- How do I report errors on my credit bureau?
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At Palomar Bancorp, we do not charge any up-front fees. There is no cost or obligation to apply for a loan with us. Therefore, if you take a few moments to fill out an application, we can pull your credit report and begin the approval process. We have relationships with more than 30 banks and a very broad spectrum of available products.
If a score improvement is necessary, our consultants can utilize a “What If” feature. We can calculate how much your score can improve by either paying down credit, transferring balances, or simply by waiting a month. These scenarios can require you to use cash to pay down debts anywhere from $0 to $5,000. However, you can often see a score improvement from 2 to 10 points using very little cash.
Unfortunately, there’s not much you can do if you need a major score improvement. Since your scores are based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your credit score and to ensure that your credit history is correct. Fortunately, Palomar Bancorp is here to help. Apply today, and your loan consultant can put you in the position to both maximize your credit score, and take advantage of the best mortgage loans available today!
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