Long Beach California Real Estate Loans

Long Beach, Ca.  Wow, with more and more workers getting laid off(depending on your State, unemployment figures are shifting up between 8.25% -15%), we have to address the credit issue as both agents and home buyers.  You see, the old models are quickly becoming archaic when you have a good family, suddenly late on payments, because of a lay off or less hours at work.  This is transcending into the home buying and refinance markets in that more and more people's credit scores are dropping below 620, which is an industry standard now for the minimum FICO required by HUD on FHA purchase money loans.   There are a few lenders that go below that but charge a premium in points.  Below is an open letter written by my friend Steve Manos describing how your credit scores are calculated.  It is adviseable to retain someone like Steve, who can periodically review your credit, and for a nominal fee, keep your scores high. 

A credit score is a number that lenders use to help them determine their creditworthiness. It is generated through statistical models using elements from your credit report; however, your score is NOT physically stored as part of your credit history on the credit file. Rather, it is typically generated at the time that a lender requests your credit report, and is then included as part of the report.  That is because your credit score is a "fluid" number, and it changes as the elements on your credit report change. For example, payment updates or a new account could cause your scores to fluctuate. Designers of credit scoring models review a set of consumers, often over a million, who opened loans at the same time, and determine who paid their loans and who did not. The credit profiles of the consumers' who defaulted on the loans are examined to identify common traits they exhibited at the time they applied for the loan (such as number of open accounts ;amount of outstanding balances; number and severity of late payments;type, number and age of accounts ;recent credit inquiries, etc.) The designers then build statistical models that assign weights to each variable, and these variables are combined to create a credit score. Below is a pie chart breaking down the percentages of each considered category that is used to calculate your score:

Few consumers get a perfect FICO score, and nearly half get under 700. Here is a breakdown of the U.S. population :

          Score of 800-850 :   13%

          Score of 750-799 :   27%

          Score of 700-749 :   18%

          Score of 650-699 :   15%

          Score of 600-649 :   12%

          Score of 550-559 :   08%

          Score of 500-549 :   05%

          Score under  499 :   02%

For years I have been warning my clients to ignore all the fake credit score companies and fake credit score monitoring companies, and only purchase your credit scores from www.myfico.com/12, or get your free credit reports from www.annualcreditreport.com. Experian is making a killing promoting their fake report/report monitoring site to unsuspecting consumers who do not read the fine print when they obtain their "free" credit reports, and end up actually subscribing to a monthly credit report monitoring service.  I recently watched a video countering Experian's profitable little scam...When I found out who made the video I was shocked !   It was made by the Federal Trade Commission (FTC). This new commercial is the FTC's  latest attempt to warn the public about these catchy commercials featuring " singing pirates".   Watch the video here:

http://www.you tube.com/watch?v=krG2d7OK8MM.

How are FICO credit scores calculated and what determines your FICO score?  The formula for creating  those scores works like this :

FICO first sorts each person into one of ten credit categories so that , for instance, people with " thin files " -not a lot of credit history-are compared only against other people with      " thin files " .

The FICO formula then starts with a neutral score - about 600 points - and begins adding and subtracting points based on the activity shown in the consumer credit file, said Craig Watts, a Fair Isaac spokesperson.

FICO scores are based only on what is in the consumer's credit file - and that file can be different from one credit bureau to the next. So it's not uncommon for the same person to find that his or her FICO scores at Trans Union is different from that at Equifax or Experian.

That is why at Center for Better Credit we feel it is more important than ever to enter into any long term financing deal with as high a FICO credit score as possible from all 3 of the major credit bureaus. Not just to save a lot of money on interest over the life of the loan, but in todays lending "climate" it is important to have higher scores just to even be approved. Please contact us with any specific questions. All of our contact information is at bottom of e-mail.

Sincerely;

Steven J. Manos

President

Center For Better Credit

3857 Birch Street No.630

Newport Beach, CA 92660

A Non-Profit Corporation Dedicated To Informing And Helping Consumers

Deal With Their Credit Issues & Resolve Their Credit Problems.

(949) 200-7507 Phone

(949) 553-1746 Fax

(714) 277-8583 Cell

(800) 359-0455 Toll Free

www.centerforbettercredit.com Website