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Credit Report Score Range - Know Your Credit Worthiness

Understanding how credit reports and scores affect your ability to get a mortgage

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twitter-axcess-mortgage-and-loans-financing.jpgMarieCopeland @AxcessMortgage

What's the big deal about credit report score range ? It tells lenders where you fit on their scale of credit worthiness. Understanding credit report score can pay off in volumes.

Building good credit report score range.jpgGrow your credit score to top of credit report score range.

But, the credit score is not the only measure and there are exceptions. For example, you have a credit report score range of 670 - 699 with one low credit limit credit card opened less than a year ago. You go to your bank and get turned down for a mortgage. While your friend with several older trades and a score of 620 gets a mortgage approval.

You'll get more details how this works by reading my article "credit reports and score" -- get the link at the bottom of this page.

From top to bottom of credit report score range

If you have a 700 credit score or higher, you are at the top of credit score rating scale. You are golden, provided that:

  • You have at least two trades with at least $2,500 credit limit;
  • These trades have been open for a minimum of one full year;
  • There are no late payments or prior derogatory credit for two years or more.

Well, you will also need to meet the bank's income and debt service requirements.

670 Credit Score to 699 credit score is viewed as a normal to good credit score range. Again, the above conditions apply to get bank type financing.

Some 'A' lenders may give you a mortgage with as low as 620 credit score -- provided there is no late payments and a reasonable explanation why your credit has slipped. If all other aspects of your application, such as your income and home equity are strong, lenders may consider your application.

669 Credit score to 585 credit score is viewed as fair credit report score range. However, with few exceptions you will have trouble qualifying for bank type financing. You're now at alternative mortgage financing range.

When you are in this range of credit score, lenders adjudicate applications on individual basis. How much money they will lend you depends on not only your credit but also the quality of the property, location and income.

If your house has no municipal services but is well and septic, it's likely the maximum first mortgage you will get is 65% of property value. Your interest rate will also be 1% - 2% higher than bank rates.

If you need more money, that's where a second mortgage lender can step in. Private mortgage lenders fill a huge void in a marketplace -- they say YES when everyone else says NO.

Second mortgage info

When you drop below 585 credit score, get help from bad credit mortgage lenders and private mortgage lenders. If you are buying a home, the mortgage strategy could be alternative mortgage financing plus second mortgage lending behind the first. If you own a home withe equity and need bad debt help, second mortgage debt consolidation may be a fit. When you're this low on the credit report score range, second mortgage home loans can be a good short term fix. This allows you time to resolve your financial problems and take steps to re-establish your credit.

If all your credit cards have been closed by the creditors, be sure to get a secured credit card. It will help you rebuild your credit and reach the top of the credit score rating scale. Below is a link to get your secured visa application -- almost everyone qualifies.

Marie Copeland, FSU, Broker

Top Stories

Credit reports and score plus credit report score tips.

Get your secured credit card application to rebuild your credit.

About credit score ranking and how to maintain good credit score range.

What is needed to qualify for a mortgage.

Make getting bad debt help your goal. Understand debt settlement negotiations, debt consolidation and credit management.

Refinance home mortgage tips.

Return to top of Credit Report Score Range.

Know your credit worthiness. What does your credit report and score really say ?

Ask Marie. It's Free.

*Lenders change their products and interest rates without notice.

Banks and "A" Lenders pay us for your service. EXCEPT bad credit mortgages, some self employed mortgages, private mortgages or multi-use and commercial loans - broker fees are payable by clients.

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