A good FICO Score is critical
February 28, 2009 by David
Filed under Real Estate
Lenders use your FICO Score more than other factors when considering your home loan, credit cards or other loans and financing. That is why you should try to stay up-to-date on what your Fico score currently is and always be on he lookout for ways to improve your FICO score. There are good ways to make your fico score better. One of them is effective, simple and surprisingly easy to do, which will be discussed in an upcoming post.
No matter how good your FICO score may be, simply keeping your credit limit is getting tough and creditors are actively reducing or even closing accounts for little if any valid reason.
In fact, many banks and other lenders are as we speak sharply reducing credit lines including credit cards and home equity line of credit loans, or worse yet closing the account or lowering the line to the current balance. More on this later along with a suggested plan of action to save your buying power.
In the meantime, it would be a good idea for you to check your current Fico score (and its recent history) because one of the possible reasons for creditors to be so pro-active is they routinely do a credit bureau report to check your Fico score and can and will use that to justify credit limit reductions.
Good point David about checking FICO score. Definitely something which buyers should do ahead of applying for a loan. They say with identity theft that sometimes a credit account can be opened in your name without your knowledge of it. So getting a full and accurate picture of all open lines of credit, and the related FICO score, might help prevent any embarrassment or surprises with your lender.
I learned several years ago that a credit card account was still open to me (via my lenders credit check) even though I had cancelled that credit card years earlier.