Credit Score Check
How To Check Your Credit Score
The most influential determinant of your mortgage rate is your credit score. The higher your credit score, the lower the interest rate on the mortgage. This is why it’s critical to know your credit score when considering a mortgage.
Here’s the good news: getting your credit report is easy and free! There are three easy ways to check your credit score.
- Check your credit care or other loan statement. Many major credit card companies provide your credit score on a monthly basis. You can check your printed statement or log into your account online. Many major credit card vendors even have apps you can download to your smart phone specifically for tracking your credit score.
- Use a credit score service. Many websites exist that will provide you a “free credit score.” Some of these are funded by advertising on the site and are therefore free for the visitor to use. One of the most popular of these services is Credit Karma. You can get your scores for free from both TransUnion and Equifax. They have easy-to-read reports and even have tips for improving poor credit. Commonfund has no affiliation with Credit Karma; this is just a recommendation based on previous customers, and we think it’s a pretty good tool when used correctly. Feel free to explore for yourself!
- Get a free credit report. You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. You can order yours online at annualcreditreport.com or call their number. Directions for doing so can be found at the Federal Trade Commission website.
How Credit Score Affects Your Mortgage Rate
Your credit score plays a big role in determining your mortgage rate. Borrowers with high credit scores tend to get lower interest rates on mortgages than borrowers with low credit scores. However, just because you have poor credit doesn’t mean you won’t qualify for a mortgage. FHA loans, or Federal Housing Administration loans are often good options for those with fair to poor credit.
- A credit score of 740 or higher typically qualifies for the best interest rates from most lenders.
- It is difficult, but possible, to get a mortgage with a credit score under 620.
- One percentage point of difference can save or cost you thousands of dollars on your mortgage.
I know my Credit Score – what’s next?
If you know your credit score and are looking for a mortgage, the best next step is to sit down with a professional to review your financing options. We work with nearly every kind of mortgage product so we can help you choose the options that work best for you. If you have poor credit, our agents can help you explore what mortgages are available, including FHA loans, and can even work with you to get your credit back on track.