Click To View Links

Credit Grades - Rating Scores

Should I worry about credit grades in relation to my credit scores?

If you are soon to be a first-time homeowner, you have to pay real close attention to how these grades work. A credit score is a figure that's produced through a mathematical formula, really an algorithm. It's based upon your own credit report compared to millions and millions of other people's.

The figure that emerges after this calculation is a very dependable prediction on the likelihood of how you pay your bills.

Want to know what your grade is? Knowing your score will help.

Credit lenders are those you approach for a loan, and they utilize a credit rating scale in order to decide if you are indeed creditworthy. The FICO credit score is the most popular of those scoring models.

Lenders take that figure and put a grade on it. With an "A+" being excellent and an "E" being poor.

credit grades affect loan approval

The credit rating scale of this model goes from 300 all the way to 850. In a nutshell, the higher your credit score is on that scale, the better your chances are of getting a lower interest rate, which is precisely what you desire if you are in the market for your first home.

Now, if you are a person whose credit grades are an "A+" or closer towards the 850 number of the FICO scoring model, then you will have no trouble getting a great loan with low interest rates. However, the majority of people are not near that number, so it is likely that you have to work hard to improve your credit rating scores before you will receive a favorable loan from a lender.

What Affects Credit Grades?

One of the best things you should keep in mind to improve your credit immediately is to avoid any late payments and make it a point to pay on time. While this may sound obvious, you should do everything you can to avoid bankruptcy, since it will stay on your credit report for up to a decade, easily.

With regard to your credit cards, do not max out any of them, and exercise the discipline necessary to reject getting store credit cards. Do not be afraid to demand higher credit limits on any of your credit cards from your credit card company. Finally, do everything you can to pay down any debt that you have to your name.

If you watch your financial picture closely, credit grades of an "A+" or "B" a lender will give your loan application. Thus you will be in the best position to get the best mortgage your money can buy!

Want to Learn More???

Credit Report Questions and Answers forum gives you a great opportunity to get more answers to your questions. So go ahead....pick my brain!

Stay up-to-date with all that is new at First Time Home Buyer Solutions. Subscribe to the RSS feed at the bottom of the navigation bar over on the left.


Leave Credit Grades and return to Home Buying Credit main page.

Go to House Buyer Solutions Home Page.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. Happy New Home Owners in Delaware

    Nov 29, 17 04:18 PM

    I'm always excited to see my web visitors that use me as their real estate coach successfully close on a home. First Time Home Buyer Process Please read this testimony to see how happy they were. Then visit my Home Buyer Help page…

    Read More

  2. Great Southern Homes

    Nov 01, 17 03:23 PM

    Great Southern Homes, the biggest Home Builders in South Carolina and a renowned voice in new home constructions. ____________________________________________________________

    Read More

  3. Ann Carr Real Estate

    Nov 01, 17 03:19 PM

    Whether you’re a long-time resident, moving to or moving away from the Abilene, TX area, I hope we can work together to simplify the home buying and

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter