As a credit repair specialist,
question I hear most often is "what's a good credit score?".
It seems that everyone cares about their credit score these days, with interest rates lower than ever and easy money lending environment we have now that comes with low rates.
The good news is, it is easier to get that loan for your house or car than ever before.
"Oh No, I Have a 622 Credit Score!"
Recently, I went to purchase a triplex to live in and keep as an investment, and when I got to lender's office I found to my horror that I had a middle credit score of 622. I will explain this in a moment, but even though this score was considered "bad" a few years ago, it turned out to be ok.
Your Middle Score
What do I mean when I say I had a middle credit score of 622? There are three main credit bureaus, and banks are now in practice of looking at your credit scores from all three bureaus, and then using "middle credit score" as an indicator of your credit performance. They order a report that they call a "Tri Merge" or a 3-in-1 credit report. There are actually six main companies that banks like to use to provide this type of report, although there are many companies out there that will sell reports to public. If you order a 3-in-1 credit report on your own, banks will still insist on ordering theirs from one of their preferred companies. Once they discover your middle credit score, they use this as a very important indicator about your creditworthiness. Your credit scores can make or break your home loan or credit application.
What Does My Credit Score Mean?
Generally speaking, having a 650 credit score or higher means that you can find many home loans at a good rate, and having a 720 credit score or higher is "holy grail", highest score category where you can qualify for all best loans like zero percent down or 125 percent financing. Credit scores go all way up to 850, and all way down to 350.
