| Refinancing is just like requesting a new loan. Except | | | | good credit. Basically, the higher the score the lower |
| that you're specifically requesting a loan with better | | | | your rate because you're considered less risk to the |
| terms and rates, so you must make sure all your credit | | | | lender. |
| information is correct. | | | | 680 - 699 Good |
| Your credit report is based on your debt levels in | | | | A score in this range means good credit. You should |
| proportion to their limits, your payment history and | | | | be able to qualify for most loans but you may be |
| other information gathered by the three credit bureaus | | | | paying a slighter higher rate than those offered to |
| (Experian, Equifax and TransUnion). From that they | | | | borrowers with excellent credit. |
| calculate your credit score and assign a number | | | | 620 - 679 Fair |
| between 300 and 850. The higher the score, the | | | | Although a credit score in this range is still considered |
| better. | | | | okay by many lenders, you may not get approved as |
| Lenders use that score to determine whether to | | | | easily as a borrower with a higher score. You probably |
| accept a loan application and the rate they will charge. | | | | won't qualify for the best rates either. |
| That's why it's important to make sure your | | | | 580 - 619 Poor |
| information is correct. You're entitled to a free credit | | | | Scores in this range are below average (sub-prime) |
| report once a year from each of the three credit | | | | and you'll have a tough time getting a loan or even a |
| bureaus. You can get a free credit report from | | | | credit card. If you score in this range you should work |
| AnnualCreditReport.com, which is the only authorized | | | | to improve your credit score because you'll be paying |
| source for consumers to access their credit report. | | | | higher interest rates just to get credit approval. |
| Here is a breakdown of the scores and what they | | | | 500 - 579 Damaged |
| mean to you. | | | | A credit score in this range usually means you've had |
| 700+ Excellent | | | | a collection, charge-off, a foreclosure or a bankruptcy. |
| A credit score over 700 means excellent or very | | | | Your credit is in need of repair. |