A FICO credit score measures a consumers credit rate and good or bad standing. A credit score is is a report on a borrowers credit history. This report analyzes an individuals credit history considering factors like:

• How long you,ve had credit.

• Types of credit.

• Employment history

• Negative credit information such as bankruptcies, charge-offs, collections, etc.

It is of course understood by many consumers that a good credit history, gets the lowest rates when shopping for a residential home mortgage loan or refinancing. Individuals with bad credit, those with too much debt or a bad repayment history, will either be denied or have to pay higher costs and rates for their loan.

Credit reporting is vital in borrowing and acquiring a loan. The most important step to taking these steps is to first focus on your credit rating and make sure that you are credit-worthy. Providing a history of paying bills on time, raises points with lenders. Scoring high in a mortgage lender’s eyes, is paying down outstanding bills and increasing the equity in your home.

Shop for a lower mortgage rate, refinance, and lower your monthly payments for a higher credit rating. When cashing out pay-off bills. Or invest by opening a money market account and saving for your future. Lenders will fight for your business once you demonstrate a positive credit history. Its never too late to repair credit.