Your FICO credit score used by mortgage companies to determine how much risk you are for a home mortgage refinance zajam.Smanjiti score, the more you pay when you refinance a mortgage. There are ways to improve your credit before applying, and save money on your home mortgage refinance loan. Here are tips to help you polish your FICO score and qualify for better mortgage refinancing rates.
FICO stands for "Fair Isaac Corporation," named after the company that calculates the result. Fair Isaac evaluate the contents of your credit report and assigns a numerical value for your credit worthiness. Since there are three companies that keep records, you will have three FICO scores, one for each credit agency. Before you consider mortgage refinancing it is important to request a credit report from each credit reporting agencies and carefully review your records for errors.
of any negative information can be found in your credit report will damage your FICO scores. Other factors that affect your FICO score includes the length of time you used the loan, the loan amount available to round off your debts, the negative credit information in the file, collection, or any write-off bad debt. If you find errors in your credit history is important to dispute errors, and allow sufficient time for adjustment to increase your FICO score before applying for a home mortgage refinance loan.
How to improve your FICO score before mortgage refinancing
Improving your credit score takes time, there is no quick fix, however, there are steps you can take to increase your score. First, make sure you are paying all your bills on time and 35% of your FICO score is based on your payment history. Fair Isaac is also a base of 30% of your FICO score the amount of their debts and available credit limit. The remaining factors include 15% based on the length of your credit history, 10% of the amount of recent inquiries, and 10% on the type of credit accounts you use.
, which can be controlled before mortgage refinancing include paying your bills on time, maintaining low balances on credit cards and paying off the negative information contained in your credit izvješća.Više time you devote to improving your credit score, the more you can raise your FICO score. If you are a homeowner with bad credit want to devote at least six months to improve your FICO score before applying for a home mortgage refinance loan. You can learn more about your credit and how it affects mortgage refinancing registering for a free mortgage tutorial.