Thursday, September 3, 2020

Which FICO Score Is Most Important

 People often ask me:  Which FICO scores are most important for mortgage applications?

We GENERALLY use what is called the "mid score." Most people have three FICO scores—one from each of the three credit repositories (Equifax, Experian, and TransUnion). We discard the high and the low using the one in the middle—the mid score.

This is especially important when we are doing a "rapid rescore" or "credit bureau update." These both mean the same thing: using documentation acceptable to the credit bureaus, we can bypass the normal monthly reporting cycle for creditors. If we are paying down revolving debt, for example (credit cards), we will get a current statement from the borrower reflecting the lower balance. The credit report vendor will submit that document to the bureaus and get a new FICO score within about five days based on the lower balance. FICO scores begin to suffer when credit card balances exceed about 30% -50% of the credit limit. The credit report vendors charge a fee for the rescore service, and since we are only looking improve the mid score, only one or two bureaus need to be updated. This saves the borrower a couple of hundred dollars. I also have tools available that help to analyse your accounts and simulate a what if situation, meaning if I pay down this or that account how will it effect my credit scores. 
Credit standards are not as stringent as some believe. You can buy a home with lower scores than you might think. 

If you have questions about our credit, reach out. I'm here to help.

Thank you for visiting my blog, please leave me a comment and let me if you like my blog and the information I post. 

Roxy Redenbaugh, Broker
Sr Mortgage Consultant
Residential and Commercial
The Greatest Compliment I Can Receive Is A Referral From Friends, Family, and Business Associates,
NMLS#269926 Company NMLS#1930219


FOSHAN GOYU INDUSTRIAL CO, .LTD, established in 1987, It is a professional furniture hardware manufacturer and supplier, specializes in developing, producing and marketing furniture fittings. said...


I liked your blog very much it is very interesting and I learned many things from this blog which is helping me a lot.

Thanks a lot!

Sliding Door Damper

Nadia Albert said...

My name is Mrs Nadia Albert from Russia, And i am a happy woman today through the help of a Loan lender, Mr Russ Harry. I will refer any person that is looking for loan to this Loan firm. He gave  happiness to me and my family, i was in need of a loan of $500,000.00 to start my life all over as i am a single mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of $500,000.00 US Dollar, at a low Rate. He is a God fearing man, if you are in need of loan and you will pay back the loan please contact him Via /Whatsapp number+393511617486