Credit Score Rating

Credit score rating is not that complicated. Good credit is certainly one of the fundamental, core elements of obtaining a good California home mortgage loan. Establishing good credit is important and its importance cannot be understated in the obtaining of a home loan. Good credit scores also allow the borrower to qualify for the best loan programs.

In areas like Los Angeles, San Diego, and San Francisco where Los Angeles home loans, San Diego mortgages, and San Francisco home loans require an enormous investment, good credit can carry the day and save the borrower a significant amount of money. (A Texas mortgage loan or a Las Vegas home loan or any area of the country for that matter requires good credit score rating.)

Credit Score Rating Rankings

Credit scores range from 340 to 820, the minimum and maximum respectively. The higher the score, the better a risk the lender thinks you are. Generally speaking, scores 700 and over will get you the best loans, or as we say in mortgage loan parlance "A-paper loans."

• 730 and up - Grade: A+
• 700 to 729 - Grade: A-
• 660 to 699 - Grade: B+ (A 660 score is adequate for some lenders to give the borrower an "A-paper" loan.)
• 600 to 659 - Grade: B and B-
• 550 to 599 - Grade: C
• 500 to 549 - Grade: C-
• 400 to 499 - Grade: D
• 340 to 399 - Grade: E

Scores are tabulated by combining all the information a credit report through a mathematical model, which in turn, forms a number that best represents the credit worthiness of a home loan seeker. Each element of your credit report brings a certain "weight" to the calculation. Generally speaking, the structure is broken down as follows:

• 35% - Your Payment History
• 30% - Amounts You Owe
• 15% - Length of Your Credit History
• 10% - Types of Credit Used
• 10% - New Credit Tradelines

Be advised, this is not set in stone, but is I believe a good representation of how scores are tabulated. By the way, did you know that the average credit score in the United States is 678?

Credit Agencies

Here are their respective addresses and toll-free numbers.

I hope this credit score rating article has been useful to you.