Your credit report is the only thing standing between you and your dream of buying a house.
First-time homebuyers often don’t know the importance of having a Good credit score. Let’s say that you are planning to buy a house. You approach a lender for a pre-approval letter. You meet all the eligibility requirements and are given the documents. When the time comes for an in-depth review, the lender looks at your credit score and your credit history.
This allows them to find out how good you are at paying the bills on time and if you have any outstanding debts. Your loan amount and terms also depend on the lender’s score to evaluate your report. Here are two scoreboards that are most commonly used:
FICO® Score
| Credit Rating | FICO Score Range |
| Very Poor | 300 – 580 |
| Fair | 580 – 669 |
| Good | 670 – 739 |
| Very Good | 740 – 799 |
| Exceptional | 800+ |
Source: MyFico
Your FICO score is a total of the following categories:
- Payment History: 35%
- Amounts Owed: 30%
- New Credit: 10%
- Credit History Length: 15%
- Credit Mix: 10%
VantageScore
| Credit Rating | Vantage Score Range |
| Very Poor | 300 – 499 |
| Poor | 500 – 600 |
| Fair | 601 – 660 |
| Good | 661 – 780 |
| Excellent | 781 – 850 |
Source: Experian
Your VantageScore is a total of the following categories:
*On a scoreboard of 1 to 5, here’s how influential the categories are:
- Balance, Available Credit, and Total Credit Usage: 5
- Credit Experience: 4
- Payment History: 3
- Age of Credit History: 2
- New Accounts Opened: 2
While Experian, Equifax, and TransUnion are the top three bureaus to get your yearly credit report, here are a few others you can check out:
AnnualCreditReport.com
This website allows you to get your Experian, Equifax, and TransUnion reports in one place.
Pros
- No account requirement
- Availability of multiple reports
Cons
- Can be accessed once a year
- Does not give you your credit score
Credit Karma
Allows you to view your credit report from time to time and allows you access your TransUnion and Equifax reports.
Pros
- Shows your credit performance
- Accessible anytime
Cons
- Account required
- Reports from only two credit reporting bureaus
Credit Sesame
This website allows you to see the factors that impact your credit.
Pros
- Accessible anytime
- Monthly updates about your credit report
Cons
- Sign-up required
- Only provides you with the TransUnion report
CreditWise
This website allows you to check your credit score periodically so that you can see how it’s progressing.
Pros
- Offers credit score simulator
- Timely notifications about changes in the credit report
Cons
- Sign-up required
- Only provides you with the TransUnion report
There you have it ― four great websites that allow you to check your credit report and access to your credit score along with the benefit of receiving a monthly report about its improvement.
Looking for a Windermere Florida Realtor to help improve your credit score? Visit the Megan Dowdy Realty website now to consult with a professional Orlando realtor. For further information, call on 407-509-9279.
