10 Home Buying Credit Myths Debunked
Thursday, January 7, 2010
Buying a home means you need to understand your credit score better and how it weighs in and out of your favor. This is true In Los Gatos and the Bay Area, more than most, due to the high priced Real Estate here. Investors know this and so should you. What will a finance company consider when you make an offer on that Los Gatos foreclosure you want to buy?
With all the misguided information flying around about loan modifications understanding these myths will prevent some misteps.
“Many Americans hold mistaken beliefs about credit scores,” cautioned Ethan Ewing, who heads the free online consumer portal at Bills.com. “Misinformation on television and in hearsay from friends and neighbors only compounds the problem.”
Here are the top 10 commonly held myths surrounding credit scores:
Myth #1: A credit score is a credit report. The credit report is a detailed listing of all debts and payments, going back throughout an individual’s entire payment history, Ewing explained. For each entry, it shows the creditor’s name, amount owed, the highest balance owed, the available credit, whether the account is open or closed (and who closed it), the number of late payments and whether the account is in default. A credit score is a number between 300 and 850 that is based on complex formulas incorporating all the data in the credit report. Most homes for sale in Los Gatos yield many offers so, you need to have the best credit score. Read the rest of this entry »
