Did you know bad credit directly affects your monthly mortgage payments dramatically?

The difference of having a credit score of 620 instead of 700 could mean as much as a 2 to 3% higher interest rate – and that can really add up! With the current mortgage rates at all-time lows, now is the time to lock in your low rate mortgage. Bad credit can prevent you from doing this. The difference between a high credit score and a low one could add up to $298 a month, or more than $3,500 a year!

700-759 Credit Score:
  $300,000
  APR 4.643%
  $1,546 Monthly Payment

620 -639 Credit Score:
  $300,000
  APR 6.232%
  $1,844 Monthly Payment

Closing accounts CANNOT help your credit score.

Be careful when you want to close out and account. Closing accounts may not help your credit score, and may hurt it. The credit score looks at the difference between your available credit and what you're using. If you shut down accounts, your total available credit shrinks, making your balances loom larger – that may hurt your score.

Lenders check all three scores - and may pick only one.

All three recognized bureaus offer credit scores using the FICO© formula, but they each give the scores a different name. The bureaus don’t share the same data and scores will vary.

Mortgage lenders may only take the middle score from the three bureaus when making their decisions. Fixing errors in all three reports before you apply for a big loan (like a mortgage) is smart. Unless you understand how the bureaus calculate the data, it is best to leave that to a NorthStar Credit Score professional.

 

Contact us

Toll-free: 1-888-920-2299
E-mail: analyst@northstarfc.com