What is your FICO Score?

You may have been hearing the term "Fico Credit Score" in the news lately. And unless you're a mortgage broker, you probably have no idea what that means. Let's break it down, shall we?

First of all, Fico Credit Score, by definition courtesy of Wikipedia, is: The best-known and most widely used credit score model in the United States, the FICO score is calculated statistically, with information from a consumer's credit files. The higher your FICO score is, you may be offered a better interest rate on mortgages and auto loans.

You may also have heard of similar credit ratings, such as your NextGen score, and/ore VantageScore. They haven't had the same popular reactions that FICO credit scores have had.

Now, let's break it down. What does your FICO score look at? What does all of this mean? Well, your prayers have been answered. Here is a detailed breakdown of what your FICO score consists of:

35% - Payment history - Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a FICO score to drop. Paying bills on time will improve your FICO score.
30% - Credit utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit or credit limit. You can improve your FICO scores by paying off debt and lowering credit utilization ratio. Alternatively, applying for and receiving credit limit increase will also drive down the utilization ratio. Closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on their FICO score.
15% - Length of credit history - As your credit history ages, it can have a positive impact on their FICO score.
10% - Types of credit used (installment, revolving, consumer finance, mortgage) - You can benefit by having a history of managing different types of credit.
10% - Recent search for credit - Credit inquiries, which occur when you are seeking new credit, can hurt your score. Individuals shopping for a mortgage or auto loan over a short period of time will likely not experience decrease in their scores as a result of these types of inquiries, however. While all credit inquiries are recorded and displayed on your credit report for a period of time, credit inquiries that were made yourself (to check your credit), by your employer (for employee verification) or by companies initiating prescreened offers of credit or insurance do not have any impact on your credit score. 

There are other special factors which can weigh on the FICO score.
 - Any money owed because of a court judgment, tax lien, etc. carry an additional negative penalty, especially when recent.
- Having one or more consumer finance credit accounts may also be a negative.

If you have more questions about a FICO score, or you'd like to talk to a mortgage broker in detail about YOUR FICO score, go to www.m19r.com to contact one of our partners in the mortgage business. 

Why use a Rental Agent?

Most people in today's market use a real estate agent when purchasing a property, but a lot of people don't know you can also have a real estate agent when looking at rental properties. You may be wondering what the perks are of using a rental agent.

First, a rental agent knows all of the ins and outs of tenant and landlord rules and responsibilities. They will be able to tell you what fees really apply, and where you might be getting taken advantage of. Rental agents also have access to multiple rental listing sites, including the MLS as of September 2010. Agents can set up showings for you, and accompany you to the showings, as a safety precaution. Agents can assist you in the negotiation process, whether it be the monthly rent the landlord is asking, utilities, pet deposits, and other areas of renting. Some landlords may be flexible in certain areas. Rental agents can also give you more background information on neighborhoods, if you are new to the area. We have access to information about schools, parks, transportation, and other neighborhood amenities that may be of interest to you. 

These are just a few of the perks that come with using a rental agent. One more bonus isthat the majority of the time, the landlord or listing agent will cover the fees for the rental agent, so there will be no cost to you! If you have any questions or if you'd like more information, please call our rental specialist, Jess Mueller at 612-965-8817, or email her at jess@m19r.com