When it comes right to it, we're simply a number. There used to be the time when applicants for loans were assessed by the Three Cs; namely, Credit, Collateral and Character. There was a time when you could obtain credit simply because a banker liked you.

Times have changed. With the age of technology the world has become a lot more personal which includes the lending business. The three Cs have been reduced to just one number credit score. Your best chances of obtaining the loan you need are based on the way you perceive the famed number.

You're credit file is card of how well you manage your credit card. Like your grades in school the higher your score, the better your chances of success.

Scores vary from 300 to 800, with the majority of credit reports scoring between this range, ranging from 480 to 760. Three credit bureaus are the main ones. They are Equifax, Experian, and TransUnion. Each of these credit bureaus is a different one with its own proprietary formula for calculating your score on credit.

Similar to being judged at an event for figure skating each bureau will have its own perception of your borrowing performance. The factors that determine the credit score include repayment history, the total amount of your accounts open, the proportion of your credit limits and the outstanding balances, and inquiries from lenders to name the few.

How do you interpret your score in the context of getting a mortgage? Different mortgage companies have different ways of using your score. In most cases there are lenders who refer to the middle. While looking through your credit reports you could find some sort of hypothetically that Experian has given you a score of 630, TransUnion 614 and Equifax 634.

In this instance, your middle score is 630 and will be http://jeffreyjrkz737.image-perth.org/the-biggest-problem-with-the-... the basis on which creditworthiness is assessed. In essence, the high and low scores will be thrown out and disregarded. However, not all lenders operate in this manner. Some will only take your lowest score. Some will consider only your highest, and some might consider a mix or an average of all three.

The main thing to remember is that your score is merely a number, a common denominator to which anyone can find a connection. As with the weather conditions, everyone can relate in terms of the degree of temperature. But the interpretation of temperature is subject to interpretation. For example, 80 degrees could be considered hot by one person, but it might appear cold to another. Similarly, a score of 630 may be considered as excellent credit by certain lenders and bad by others.

With the many different definitions and variables, one thing is for certain. having the best credit score feasible is the ideal bet. The benefits of having great credit score are numerous. With a high credit score, you will be able to get lower interest rates, less minimum down payments, faster loan processing times among the many benefits. It can NEVER work against you to achieve the best credit score. With it, you'll be able to make savings in time and money , which can translate into thousands of dollars per year, every year.