Protect & Increase Your Fico Score.

Doing so will save you $$$ on Home Loans, Credit Card interest, auto loans

Can I find out what's on my credit report? Is it Free?

YES!... and Your Credit Health Depends On In!

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to qualify and the interest rate you pay usually depends on your a 3 digit number called your Fico Score. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

Important!                                                 Before doing anything else.....                Review your credit report. Is the information contained in your report correct? If the answer is no, it could cost you a lot of money in the form of higher interest rates from credit card, auto financing and home loans. Errors can be corrected, but it can take some time, so be patient. Go to www.annualcreditreport.com - (don't be fooled by other websites that appear to offer free reports)Your Credit Report is Free at this site, But, you will need to pay $$ to recieve your fico score. When you recieve your free credit report, review it carefully. If there are any errors follow the instructions provided with your credit report to correct any errors. It normally takes 30-60 days for the corrections to show up on your credit report. Better yet, if your planning on buying a home, meet with your lender. Ask them to pull your credit report. Ask them to review your report and explain to you what it all means and if necessary, what can you do do increase your score. Getting Pre-APPROVED is necessay and should be the first step you take towards home ownership. Call me first to help point you in the right direction.

Ordering a free credit report every year is good for your financial health. Identity theft is a real credit killer. Protect your identiy, protect your credit. Never, Never Ever toss personal information, credit offers, old bills, paystubs, bank statements etc. in the trash - always shred them!

Can you raise your credit score? In most cases the answer is yes....but it could take some time. If you have filed bankruptcy the process will be much slower, but not impossible. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.

FYI - Owned a home before? Losing your home in forclosure is harder on your credit than a "Short Sale".  Filed Bankruptcy?  Keep all your paperwork handy. If  Possible, Keep a second copy in your safe deposit box or other secure location. Divorced? Be prepared to provide your lender with a copy of your final Decree.

For assistance in buying or selling California real estate in San Joaquin County, Stanislaus County and Alameda County - Contact :

"Wendy" Benavides, Realtor® @ Legacy Real Estate & Associates (previously known as Remax Executive). www.WendyTheRealtor,com.