If you need a refinance loan and think you have had less than perfect credit, Countrywide may be able to help. Less than perfect credit is not a permanent state. Just because your credit was less than perfect when you purchased your home, it may be much better today. In fact, many homeowners who apply for a loan with Countrywide Home Loans actually qualify for a prime loan.
Fair Isaac’s 5 general factors that may determine your score*:
- 1. Payment History - 35%
- Delinquent payments can have a negative impact on your FICO scores.
- Consistently paying your bills on time can have a positive impact on your credit score
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2. Amount of debt – 30%
- Using a high percentage of available credit can indicate to lenders that the borrower is overextended.
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3. Length of credit history – 15%
- This takes into account your oldest and newest accounts.
- A longer credit history can increase your credit score
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Opening a lot of new accounts can have a negative impact on your score
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4. Recent accounts – 10%
- How many requests for credit you have made
- How many new accounts you have opened
- How long it’s been since you opened a new account
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5. Types of credit – 10%
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Having a mix of different types of credit – credit cards, department store cards, student loans and mortgage loans – shows that you have experience with revolving and installment type accounts.
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Your credit score also looks at the total number of accounts you have.
* According to myfico.com, a division of Fair Isaac, as of August 2006. Fair Isaac and FICO are registered trademarks of Fair Isaac Corporation. Other names may be trademarks or registered trademarks of their respective owners.
Temporary Setbacks and Less Than Perfect Credit
Life is full of ups and downs. Sometimes, temporary setbacks can have a negative impact on your credit. Nobody's perfect, right? By practicing good credit behavior, most people can overcome these setbacks over time. Here are some situations that may have temporarily affected your credit rating.
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Job Loss
Maybe you fell behind on your bill payments after suffering a job loss. Since then, you have found a new job and resumed making payments. In fact, you haven’t been late on any payments since you got back on track.
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Divorce
Perhaps your divorce left your finances in a mess. But in the last few years, you have straightened your finances by making timely payments and paid down the balances on your credit cards and improved your credit.
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Medical Bills
Maybe you had to pay for unexpected medical treatment and tapped into your credit cards. This might have impacted your credit then. but you have since bounced back and paid off your medical bills. Perhaps your credit has improved and you’re not even aware of it.
Steps to Improving Your Credit
If you’ve experienced temporary setbacks which had a negative effect on your credit, there are things you can do to improve your credit. According to Fair Isaac, payment history and amount of debt account for a big portion of your credit score. Additional factors include types of credit, length of credit history and recent accounts. By consistently paying your bills on time and reducing the amount of debt, you can put yourself back on track towards establishing good credit.
Refinance Loans from Countrywide
Even if you think your credit is less than perfect, you may actually qualify for a prime loan with Countrywide. Give us a call today and see. Our Home Loan Consultants are standing by to answer your questions and assist you.
Call Countrywide at 1-800-763-4790 and find out about the refinance loan options available for you.
