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The Business of Real Estate

Credit scores — important information


I just added an article to AustinMarketInfo.com regarding factors that affect your credit score:

The 5 Biggest Factors That Affect Your Credit

Since your FICO score affects so much of your life these days, it is important to understand how to raise it or to keep it high.

The five factors included in that article are consistent with information provided by Fair Isaac Corporation — the company that calculates FICO scores.  One item that I hear questioned frequently is not addressed in that article, but is discussed on Fair Isaac’s website:  “Will credit inquiries hurt my credit score?”  Here’s the answer “from the horse’s mouth,” so to speak:

“The score does not count ‘consumer-initiated’ inquiries – requests you have made for your credit report, in order to check it. It also does not count ‘promotional inquiries’ – requests made by lenders in order to make you a ‘pre-approved’ credit offer – or ‘administrative inquiries’ – requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either.

It is also generally true that “shopping” two or three potential sources for a single loan — a mortgage loan, for example — should not significantly impact your credit score, whereas applying for a mortgage loan, a new car loan, a “same as cash” arrangement to buy new furniture, and a couple of new credit cards all at the same time may well create real problems.

It is always worth checking your credit report — free once each year at www.AnnualCreditReport.com — but note that that information will not include your FICO scores from the three credit bureaus.  You will need to pay for your credit scores, but if you are concerned or just interested, it is probably worth the price.

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About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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