The Most Undervalued Asset - Our Fico/Credit Score
As we approach the final quarter of 2007 there is a lot of uncertainty in the Financial & Real Estate markets. Most of the information coming out is factual to a certain degree, but the media does personify things and doesn't always put things forward in the best manner. So please don't take everything the media reports as fact.
With all of the tightening of credit and lack of funds available most lenders & banks are increasing Fico/Credit Score requirements for borrowers. So this is why I believe NOW MORE THAN EVER our credit scores are extremely important. Knowing what our scores our & keeping them as high as possible will have to be a practice we all take seriously. Keeping a high score will ensure we qualify for the best interest rates and programs being offered. Also keeping our clients aware of their scores will be more important than ever and allow us to help them better.
The company responsible as of today for creating all of the formula's and algorithm's for all three major bureaus (Trans Union, Experian & Equifax) is the Fair & Isaac Company. Sometime around 2001 they launched their consumer site www.myfico.com . For anyone who hasn't used it please ck out the site and see for yourself all of the products and information they have. The Credit Education section is extremely useful in understanding the basics of what goes into your credit score. If you pull credit from their site not only will you get the most accurate info from the company creating the scores...........it won't show as an inquiry.........and that alone is a powerful resource. I use this site for my buyers before they go thru a mortgage approval we sit down and run the scores at myfico. The myfico site has a score simulator that is a great tool to see how an action will affect the credit score before you actually do it. If there is an error or mistake they have letters and tools right there to dispute items.............and if there is a correction you can get it done before the mortgage company has already ran credit and locked the scores in........so this site can be a great asset for all of us.......
In summary I just wanted to point out that this 3 digit score is now being used not only for mortgages but car loans, credit cards, employment acceptance, tenancy, health-life-auto insurance, etc etc. That is why in my opinion our credit scores are our Most Undervalued Asset. With all of the changes that have occured and will continue to occur during this credit crunch............we need to pay more attention to our clients credit scores and give them access to accurate places to go to access their scores and accurate tools to correct them. And as of today the Fair Isaac site..... www.myfico.com is one of the best places to go.
Justin Stranere - Walter Financial Inc & RFW Realtors