Welcome to Home Mortgages
Home Mortgage Loan Calculators Article
This is a selection made from among articles on Home Mortgage Loan Calculators. For a permanent link to this article, or to bookmark it for future reading, click here.
Like It Or Not, You Have A Score To Settle! (Part 1 Of 2 On Credit Scoring)
from: Www.creditandyou.comJust when most people finish with school and can stop worrying about test scores, there’s a new kind of scoring that enters the picture. It’s called credit scoring. And, its impact on your financial future can mean more to you than a college degree.
Why It’s So Important:
Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards and auto loans. More recently, scoring has been used to help creditors evaluate your ability to repay home mortgage loans.
Precisely what is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts is collected from credit applications and your credit report.
Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A scoring system awards points for each factor that helps predict who is most likely to repay a debt. Total number of points helps predict how creditworthy you are; how likely it is that you will repay a loan and make payments when due.
Why is credit scoring used?
Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applications objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.
To develop a model, a creditor selects a random sample of its customers (or a sample of similar customers if their sample is not large enough), and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk.
Each creditor may use its own scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.
How reliable is the credit scoring system?
Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, scoring systems must be based on a big enough sample. Remember that these systems generally very from creditor to creditor.
Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.
In fact, many creditors design their systems so that, in marginal cases, applicants whose scores are not high enough to pass easily, or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.
What happens if you are denied credit or don’t get the terms you want?
About the Author
For the answer to that crucial question and how to improve your credit score, be sure to read Part II of “Like It Or Not, You Have A Score To Settle.” At http://www.creditandyou.com/creditscoreexplained.html
Home Mortgage Loan Calculators Specific links
Home Mortgage Loan Calculators
- Looking for Home Mortgage Loan Calculators?
-- http://www.shopica.org/
See the Latest Tech News and Reviews!
- Come to the TeXtra network and see all of our latest videos, free!
-- http://www.mevio.com/
Get Hired
- Earn more money with a better job now
-- http://www.hotjobs.com/
Women's Shopping Finds!
- Latest Trends and Fashion in Shopping, Style & Beauty
-- http://www.shefinds.com/
Howie Mandel from the Buy.com shoot
- See Howie Mandel show you how to get the best 'deal' shopping online at buy.com.
-- http://www.youtube.com/
Home Mortgage Loan Calculators News
Subscribe to Expert Advisors - Street.Com
Action Alerts PLUS - $50 off Portfolio Calculators Stockpickr Street Answers Mad Money Performance Stock Screener Mutual Fund Screener ETF Screener Banks & Thrifts Screener Insurers & HMOs Screener Glossary Horo$copes Cramer's Action Alerts PLUS ...
Read more...A Breath of Fresh Air: Change From the Status Quo in Response to Today ... - Forbes
WYLIE, Texas, Oct. 3 /PRNewswire/ -- In today's residential mortgage crisis, there's a growing skepticism amongst current and prospective homeowners in the mortgage process -- a skepticism that's rooted in the belief that some mortgage lenders and ...
Read more...OPINION-U.S. economy and mortgage rates - Forbes
United States - (David Beadle is a mortgage industry analyst. The opinions expressed are those of the author and should not be seen as representing the views of Reuters) NEW YORK (Reuters) - Fiscal Fitness Checkup. With mortgage underwriting ...
Read more...Biz Bits: Palin gets hunting bow named after her - Morning Sun
A look at some common home-buying myths and what the reality is. - Myth 4: The mortgage process is too long and complicated. With the right resources, the process of buying a home and obtaining a mortgage can be simplified. Expect an experienced loan ...
Read more...Top things to know - CNN Money
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner. 2. Start by ...
Read more...Mortgage Rates Remain Flat Despite Drama on Wall Street - PR Newswire
SEATTLE, Sept. 23 /PRNewswire/ -- Mortgage rates have remained relatively flat over the past week, with rates for 30-year fixed mortgages increasing slightly to 5.78 percent, up from 5.77 percent the week prior according to the Zillow Mortgage Rate ...
Read more...New Free Online Tools Make Accurate Mortgage Calculations a Few Clicks ... - PRWeb
New free on-line mortgage calculators give homebuyers detailed calculations at their finger tips. Calculations include taxes, insurance, PMI, closing cost and pre-paids for all 50 states. The perfect tool for homebuyers that are not financially savy ...
Read more...Aussie needs to build credit for big purchase - New York Daily News
Q I'm a big Australian guy who's been living and working here for four years. I have $150K in cash and I earn about $130,000 to $150,000 a year and I'd like to buy a big enough place in the West Village for around $550,000 to $700,000. I've been ...
Read more...Beware of credit card sharks - News.com.au
Average credit card debt is around $3100 Around 60 to 70 per cent of credit card det isn't paid off each month Calculators : Compare different credit cards THE average Australian already has an eye-watering credit card balance of $3100. Now lenders ...
Read more...Getting the money right - CNN Money
First you have to assemble a pile of cash for the down payment and closing costs. Then you must convince a bank to lend you an even more staggering sum - generally 80 percent or more of the purchase price. So your first step, even before you start ...
Read more...