Quiz: How Much Do You Know About Credit Scoring? by:Casey Smith
Before you get a mortgage for the first time, or refinance your existing mortgage
, lenders run a credit check. Lenders use a scoring system to decide whether or not you are a good candidate for a loan, and even what rate you will qualify for. Credit scores are based on a number of factors. How much do you know about the current credit scoring system? Here is a 10 question quiz to help you find out:1. True or False: Information on your credit report is always accurate.
2. True or False: There are currently 3 nationwide credit-reporting companies.
3. True or False: An occasional bill paid late will not show up on your credit report or affect your credit score, unless you make a habit out of paying bills late.
4. True or False: If you have applied for many new credit accounts recently, that could affect your credit score.
5. True or False: If you are denied credit, you have no way of finding out why.
6. True or False: You can improve your credit score by paying bills on time, paying down balances, and not accumulating additional debt.
7. True or False: Improving your credit score is a fast process.
8. True or False: If your credit score is low, you cannot get a mortgage.
9. True or False: Credit companies may take factors such as marital status and national origin into consideration when evaluating your credit report.
10. True or False: Credit reports are available free.
ANSWERS:
1. False. There are sometimes inaccuracies on credit reports. Be sure to review your credit report before applying for a mortgage or refinancing your home.
2. True. There are 3 main credit reporting agencies: Equifax, Experian, TransUnion.
3. False. Any bills paid late are very likely to negatively impact your credit score.
4. True. It may negatively affect your credit score if you have applied for too many new accounts in the recent past.
5. False. If you ask for the information, the creditor is by law required within 60 days to inform you of the reasons your application was denied.
6. True. All of these things will help you improve your credit score.
7. False. It can take awhile to improve your credit score.
8. False. You can get a mortgage or mortgage refinancing even with a lower credit score though the interest rate may be higher. There is more information on these types of mortgages on www.mortgage-refinancing-online-guide.com.
9. False. Credit companies cannot discriminate based on these factors.
10. True. You can now obtain a free credit report through www.annualcreditreport.com. By the way, a perfect credit score is 850.
SCORING:
1-5 You need to learn more about credit scoring. Go to www.mortgage-refinancing-online-guide.com, and browse the articles.
6-8 You know a lot about credit scoring. Keep up the good work.
9-10 You might want to consider a career in mortgage loans. Great job!
About the author
Casey Smith has worked in the mortgage industry for years and writes for the website www.mortgage-refinancing-online-guide.com. Top 3 Reasons To Consider Refinancing Your House by:Casey Smith I'm Going To Be On Time If It Kills Me by:Laura Stack, MBA, CSP Sony Needs a Good Blogger by:Robyn Tippins Jacksonville New Homes - Condominums and Master Planned Communities Among Choice for Buyers by:Tracey Kirchain Office Cleaning - Advice For The Cleaning Company by:David Andrew Smith What To Say: How to Find Material To Fill Your Seminar or Small Business Management Course by:Kirk Ward Real Estate Investing -- Motivated Buyer? by:Mike Burke Christmas Loans - Taking Care Of Financial High Tide of Yuletide by:Clarice Noelle Second Mortgage/Home Equity vs. Refinance by:Benjamin Ehinger Franchise Opportunity - 5 Considerations by:Dennis Schooley Does Your Stock Investing Guru Have a Mail Order Ph.D.? by:Dr. Scott Brown, Ph.D. Finding The Top Trading Education Can Be A Challenge by:David Lewis How To Get An Auto Loan With Bad Credit? by:Dean Shainin