last bits on Fico's
Ok, so we've covered what credit scores are, how you can improve them, what affects them and how to figure out what they mean. Today, just a few more misconceptions.
Will my score drop if I apply for new credit? If it does, it probably won't drop much. As mentioned previously, if you have multiple inquiries, it won't be affected if you are rate shopping. But if you are applying for different types of credit they may drop.
What if I check my credit? Nope, self inquiries do not affect your score as long as you order your report directly from the credit reporting agencies. It is a good idea to check it once a year.
People with high incomes have good scores. Minorities have low scores. Not true. Income may affect your ability to get a loan, but it does not affect your credit score. Scores are based solely on credit related information. Factors like, gender, race, nationality, and marital status are not included, and lenders are prohibited from considering this type of information.
Well that's it for credit, now we have to find something else to talk about.
Have a great weekend,
Adam Tarr and Sharon Kotula
Your Phoenix area Real Estate Source