The Credit Scoring System Sucks!

The Credit Scoring System Sucks!

Credit Scoring
Yep, I said it and I truly believe it.  As a mortgage lender in Woodbridge, VA a great deal of my time is spent reviewing credit reports for hopeful first time homebuyers.  The variation in scores between the three bureaus, the erroneous account information, and now the way people are penalized for high credit utilization is completely ridiculous....yes this is a rant!

So you ask what is credit utilization? Basically it is the amount of credit you have in use versus your credit limit on the account. 

Since the "economic downturn" credit card companies lowered the credit limits on many consumers revolving accounts.  What this means for you is although you pay your bills on time, your credit utilization ratio may now be above 50% which is a huge no-no in the confusing " FICO credit score algorithms".  So unsuspecting clients looking to buy a home are shocked to find their scores have dropped significantly due to the "new credit rules".  Here is a link to a guide The Consumer's Guide to Credit Reports and Credit Scores by the Federal Reserve . 

The credit system sucks, but luckily your Woodbridge Mortgage Lender has ways to help you increase your credit score quickly.  Call 703-497-3936 or email me for a free consultation. And don't let the system stop you from achieving your goal of homeownership!   

 

 

 

 

 

 

 

 

 

Contact Markita Aldridge-Woods at (703) 929-2274 or via email for custom tailored mortgage solutions.

 

www.queenofmortgages.com

Let's stay connected:

Let's Connect!   LinkedIn  Twitter  My YouTube Channel...Tune in to Mortgage Queen TV 

Powered by HancockMortgage Partners LLC, NMLS#229844

Comment balloon 9 commentsMarkita Woods NMLS#196099 • February 25 2011 11:12AM
The Credit Scoring System Sucks!
share
The Credit Scoring System Sucks! Yep, I said it and I truly believe it. As a mortgage lender in Woodbridge, VA a great deal of my time is spent reviewing credit reports for hopeful first time homebuyers. The variation in scores between the three… more
Woodbridge Homebuyer Asks Can I Get Cash Back at Closing?
share
Woodbridge Homebuyer Asks Can I Get Cash Back At Closing? So you are buying a home in Woodbridge, VA Your Realtor has negotaited the perfect contract for you at the best sales price and terms, along with the seller paying closing costs &… more
MRS Tax Service
share
MRS Tax Service I'll admit it the only thing I am scared of (besides GOD) is the I - R - S that's why I use MRS Tax located at 12721 Darby Brooke Ct. Suite 101 Woodbridge, VA 22192. MRS Tax is a family owned… more
Are you relocating to Ft. Belvoir, Quantico, or Pentagon?
share
Are you are relocating to Fort Be lvoir Q uantico or the Pentagon as part of the BRAC? If you are considering a home purc hase choose your local Woodbridge VA Loan Lender We have an understanding of the l ocal… more