Credit scores explained

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Credit scores explained

November 4, 2010 - Whether a person is in the process of getting a mortgage or refinancing, good credit is an essential component of the approval process.

Before buying a home or even renting an apartment, it is important for people to consider their credit score. The most widely used score is the FICO, developed by the Fair Isaac Corporation, which ranges from 300-850.

According to the Consumer Federation of America, most people have a FICO score in the 600-700 range, where a higher score is better. They state that most lenders consider a score above 700 to be very good.

There isn't just one score however; each credit reporting agency computes its own score based on a person's credit history recorded by that agency. The three major agencies in the U.S. are Equifax, Experian and TransUnion.

The credit score is computed based on information in a person's credit report. The Consumer Federation of America gives the five areas by which a person's credit is assessed: payment history accounts for 35 percent of a credit score, followed by 30 percent for outstanding debt, 15 percent for length of credit history, 10 percent for new credit and another 10 percent for other factors.

People thinking of purchasing a home or renting an apartment may want to check their credit score early in the process. Be aware that there is usually a fee involved with obtaining a credit score.

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Friday, October 05 2012 15:15

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Singer Sheryl Crow moving out of Hollywood Hills home

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Check Your Credit News

Cash buyers represent record number of California purchases
Investors and relocating families took advantage of affordable conditions in California and purchased a record number of properties with cash in January.

Monday, March 07 2011 10:09

Mortgage rates remain relatively stable
Buyers looking to accelerate their moving plans and lock in low interest rates enjoyed a stable week for mortgage rates.

Tuesday, February 08 2011 10:33

Borrowers increasingly paying down mortgage debt
Low mortgage rates have not only encouraged many consumers to pack their moving boxes, but have also pushed others into refinancing their home loans.

Wednesday, February 02 2011 10:55

Mortgage lending to decline in 2011 amid slow refinancing
Homeowners will refinance their homes at a slower pace this year, as mortgage rates continue to push the boundaries of affordability. Buyers, on the others, will still demand purchase mortgages to finance their relocation into a new home.

Tuesday, February 01 2011 10:07

Many borrowers unaware of mortgage help programs
Mortgage borrowers in Nevada are walking away from their home loans, even though programs exist that could help them mediate their mortgage problems and aid in their relocation to a new, more affordable home.

Monday, January 31 2011 09:48

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Relocation.com
In the Press

A Moving Company's Moving Story
June, 2012

Relocation.com's survey was recently featured on the front page of USA Today. The headline entitled "Moving in Hard Times" highlighted our results that moving and relocating behaviors were only moderately influenced by the economy.

Our lifestyle survey found that Americans are seeking smaller homes and a suburban lifestyle. These riveting results were recently featured on USAToday.com in an article entitled "American dream shrinks as smaller homes gain favor."

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The more you know, the better your move will go. Check out helpful articles by our pros.