Quiz: How Much Do You Know About Credit Scoring?

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 question quiz to help you find out: . True or False: Information on your credit report is always accurate. . True or False: There are currently nationwide credit-reporting companies. . 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. . True or False: If you have applied for many new credit accounts recently, that could affect your credit score. . True or False: If you are denied credit, you have no way of finding out why. . True or False: You can improve your credit score by paying bills on time, paying down balances, and not accumulating additional debt. . True or False: Improving your credit score is a fast process. . True or False: If your credit score is low, you cannot get a mortgage. . True or False: Credit companies may take factors such as marital status and national origin into consideration when evaluating your credit report. . True or False: Credit reports are available free. ANSWERS: . False. There are sometimes inaccuracies on credit reports. Be sure to review your credit report before applying for a mortgage or refinancing your home. . True. There are main credit reporting agencies: Equifax, Experian, TransUnion. . False. Any bills paid late are very likely to negatively impact your credit score. . True. It may negatively affect your credit score if you have applied for too many new accounts in the recent past. . False. If you ask for the information, the creditor is by law required within days to inform you of the reasons your application was denied. . True. All of these things will help you improve your credit score. . False. It can take awhile to improve your credit score. . 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. . False. Credit companies cannot discriminate based on these factors. . True. You can now obtain a free credit report through www.annualcreditreport.com. By the way, a perfect credit score is . SCORING: - You need to learn more about credit scoring. Go to www.mortgage-refinancing-online-guide.com, and browse the articles. - You know a lot about credit scoring. Keep up the good work. - You might want to consider a career in mortgage loans. Great job!