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Because I am planning to buy a home within a year, I took advantage of free credit report and paid for a credit score. It states my score is 834. Now, reviewing my credit report, I have no missed payments or any other blemishes. Shouldn't the score be higher or should I view it as a score for a person that doesn't own property? I tried reviewing Trans Union FAQ regarding scores, but its just mumbo jumbo about this, that, and the other.
Thoughts?
Credit Scores
That's an excellent score, really. Higher than mine, and my score is rated "Excellent" by all three agencies.
There are some little eccentricities in the system which can affect things; one that comes to mind is paying off balances in full every month, while beneficial and the best thing to do if you can afford it, it seems could also keep you from fulfilling every criteria they may examine. Apparently they also like to look at a balance paid off over the course of a few months, for evidence of a person's reliability in making regular payments on a standing balance. Or something. From what I've heard, there's a whole bundle of such little considerations going into the calculation, being very exacting in formulating these scores - and you're probably right that "history of making mortgage payments" or some such is one of them.
But, yes, you have a very high score, so I wouldn't think that would be a problem in your eventual home search. (FWIW, my wife, with a little higher score than mine but maybe a bit below yours, and I are buying a house right now, and were able to go into our search with a pre-approval - entering the paperwork phase of turning that into the actual mortgage for the house we've selected now; though, we're currently home [condo] owners now, so we do have that bit of history you don't. Though, if anything my score was lower then than now, and we made it through fine... Yeah, I should think your credit score is plenty high enough.)
Good luck with your eventual search!
It can be a bit stressful at times during the process, but I've certainly found it worth it.
There are some little eccentricities in the system which can affect things; one that comes to mind is paying off balances in full every month, while beneficial and the best thing to do if you can afford it, it seems could also keep you from fulfilling every criteria they may examine. Apparently they also like to look at a balance paid off over the course of a few months, for evidence of a person's reliability in making regular payments on a standing balance. Or something. From what I've heard, there's a whole bundle of such little considerations going into the calculation, being very exacting in formulating these scores - and you're probably right that "history of making mortgage payments" or some such is one of them.
But, yes, you have a very high score, so I wouldn't think that would be a problem in your eventual home search. (FWIW, my wife, with a little higher score than mine but maybe a bit below yours, and I are buying a house right now, and were able to go into our search with a pre-approval - entering the paperwork phase of turning that into the actual mortgage for the house we've selected now; though, we're currently home [condo] owners now, so we do have that bit of history you don't. Though, if anything my score was lower then than now, and we made it through fine... Yeah, I should think your credit score is plenty high enough.)
Good luck with your eventual search!
It can be a bit stressful at times during the process, but I've certainly found it worth it.Thanks.
I'm not too worried about the property search. I'm actually looking through foreclosed property. Seen a good number of quality houses going from 23k to 100 k in my area. I'm almost tempted to buy two -- one for me and one to rent. Figure that even with all the new, tighter regulations, my credit report / score should be decent enough to get a house loan.
I'm not too worried about the property search. I'm actually looking through foreclosed property. Seen a good number of quality houses going from 23k to 100 k in my area. I'm almost tempted to buy two -- one for me and one to rent. Figure that even with all the new, tighter regulations, my credit report / score should be decent enough to get a house loan.