Credit Scores Explained

The interest rates for a car loan can vary based on your credit score, the higher the score the less interest you will pay on that loan, the same is true for a house. 

Credit scores are not fixed in stone and you can repair your credit.  Improve your available credit and your chances of securing a loan improve your credit score. 

Every month when you pay your bills on time you build up good credit by making your credit score higher.

Thinking of buying a house then first start with looking at your credit report and repairing it if necessary.  This will save you some frustration down the road and time when you find that house you want to call home and then your credit score is too low to let you buy it in Lexington.

These agencies offer free credit reports up to a certain point and they are available to explain their reports.

Credit Bureaus

Equifax – http://www.equifax.com/
To order your report, call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 800-525-6285

Experian – http://www.experian.com/
To order your report, call: 888-397-3742 or write:
P.O. Box 2104, Allen, TX 75013
To report fraud, call: 888-397-3742

TransUnion – http://www.transunion.com/
To order your report, call: 800-916-8800 or write:
P.O. Box 1000, Chester, PA 19022
To report fraud, call: 800-680-7289

The values of the scores are:
 
Credit Scoring Scale
Score Grade Credit Outlook
901-990 A    Excellent Rating
801-900 B    Good Rating but short of being Excellent
701-800 C    Fair; Moderate Risk
601-700 D    Higher Risk
501-600 F     Highest Risk
 
Just remember that good credit is one of the most important things to have when purchasing a home. Try to keep your credit good by paying your bills on time.