Your credit is one of the criteria’s used to evaluate your borrowing capacity. The higher your credit score the more attractive you are to lenders and the better negotiating position you are in to receive an attractive rate offer. Click here to get your FREE credit score now.
Commonly known as your FICO score, this number is between 300 and 850. It is used to evaluate your past credit history. The higher the number, the better credit risk you are considered. A low credit score suggests you’re a risky borrower, and the rate you receive may not be as low as you may expect. The generally accepted guidelines are excellent credit (740-850), good (660-739), fair (620-659) and poor (619 and below).
Get Your Credit Score
It’s good to know your credit score before starting any financial discussion. And getting your score is easier than you may realize. You can visit ClickFreeScore.com right now and get your score immediately. You can also get a free copy of your credit report from all of the major credit bureaus once a year by visiting AnnualCreditReport.com. You should know that if you personally access your credit report it does not affect your credit score.
Low Credit Score
If you have a low credit score or less than perfect credit you can try to improve your score before you begin the refinancing process. Some strategies to improve your credit score are to dispute errors on your credit reports, pay down big credit card balances and limit new credit applications while you work on your credit standing.
No matter what your credit score is, talking to a customer service representative at your mortgage servicer will be beneficial to you. They can review your credit profile and provide guidance on how it affects your borrowing capacity.