Sep
17

Hey, New York, Knowing Your Credit Score is Important to Your Financial Health

By
Graph: myFICO.com

Graph: myFICO.com

Your credit score plays the starring role in whether or not you qualify for almost any loan, mortgage or consumer credit you apply for. Other factors are taken into consideration when you’re applying but your credit score is one of the most important factors—especially in current hard economic times when lending requirements are stricter than ever.

Did you know, for example, that when you apply for a mortgage to finance a NYC co-op or condo, to get the best rate, lenders today are requiring your score is at least 760? This means that if your credit score isn’t this high, it may hold you back from your dream of being the owner of a Manhattan condo or co-op. Low credit scores can also mean higher interest rates or less favorable lending terms than applicants with high credit scores.

What affects your credit score

There are several factors that go into the calculation of your credit score . While each factor is weighted differently, payment history, the amount of debt you have, the length of credit history, the variety of credit, as well as how much new credit you’ve established are all used to calculate your score. Since higher interest rates on an approved loan or getting turned down for the loan completely are outcomes directly related to low credit scores, it is important to check your credit report and score for accuracy and to keep your credit score as high as possible.

Resources for monitoring your score

Since your credit score is so important to almost any lending decision, you need to monitor it and be aware of anything on your credit report that may bring it down. You should pull your credit report and credit score at least twice a year. There are a number of resources available to pull your credit score and/or full credit report.

Check out  Credit Karma to receive your free credit score. To supplement that, get your free full credit reports from FreeCreditReport.com. This site accesses the three credit reporting agencies TransUnion , Experian and Equifax Almost as annoying as the AnnualCreditReport.com commercials, is the fact that you will have to pay each of them to receive your score!

Comments

  1. Chris Neddersen says:

    Clean, elegant and informative. . .looks great!

  2. BobBorger says:

    Thanks, Chris-I appreciate that.