Good Credit Works

Good Credit is the building block of the American standards for credit. Most people are in this category.

A score of 660 to 720 is considered good credit. Now make sure you know that there are three bureaus.

Equifax Trans Union Equifax

All three bureaus are supposed to have made their records and scoring systems equivalent. In this world of independence and autonomy... Most in the lending business do not see this co-opertative in practice.

All three companies have different ways of scoring that are actually computer models.

Equifax calls their model The Beacon.

Trans Union has The Empirica.

Experian has the toughest model called the FICO.

When a mortgage lender pulls a credit report it is a tri-merged report. Meaning all three bureaus are pulled. The "Middle" score is the one that your underwriting process is based on.

So you could have 650 Fico, 689 Empirica and 701 Beacon. The lender will use the 689. If the scores are too far apart the underwriter will try to reason why to see if one bureau has less information than the other and your file will be scrutinized more so than if they were all in the same area.

Scores are in a range of 300 to 850.

Remember if you have a middle score of 660 or more you will most likely have excellent chances of getting premium rates and better terms on your mortgage, just like someone with Excellent credit.

There are all kinds of theories on how the scoring models can be affected for improvements. Usually it is very simple. Make payments on time for six months, pay down debt and have the ability to wait 30 to 60 days.

There are quicker ways to improve scores but it is usually done with money, correcting mis-reportings and often getting a written statement from the creditor.

This is a short rendition for helping those with decent credit know that there is complete confidence available in the system that you will qualify. All speeds ahead.

Good Credit