Credit Score 101
Understanding and knowing your Credit Score
Know your credit scores condition
Whenever you want to make any kind of purchase from a home to a car to credit cards your credit scores are going to play a key factor in your ability to purchase and at what interest rate. The higher your credit score the more likely you will be able to make these purchases and at much lower interest rates. Your score may even be reviewed if and when you decide to rent a home. apply for cable or a cell phone.
You can also download “know your credit score” published by FICO at
If you ever miss a payment on any account by more than 30 days it can legally be reported as a late on your credit report. The more times you miss payments with one or more accounts the lower your score will go.
FICO has been quoted as stating if you have no previous mortgage late's on your credit and suddenly have a thirty day late your scores could drop as much as thirty to one hundred points! FICO scores range anywhere from 300-850. Most people are somewhere in the range of 600-700.
The further payments you miss the lower your score, 30, 60, 90 day late's will continually lower your score. A foreclosure and or a bankruptcy affect your credit for years, sometimes up to seven and may take years for you to recover from this.
There are many options to deal with your mortgage payment from modification to foreclosure. Each option will have different effects to your credit score and should be evaluated before making a final decision. You can ask your mortgage company for these options and effect on your credit.