Credit Cards Give Best Credit Score for FHA and Mortgage Loans

There has been quite a bit of buzz about the new FICO Bankcard Score 8 which many credit card companies are showing to cardholders for free. If you have a Chase, Citi or First National credit card you have likely seen a free offer to check your FICO credit score. Note that some of these companies are offering variations of a credit score and not the real Experian, Equifax or Transunion Credit Score. It is very important to read the fine print before assuming the number you see on your computer is your true credit score.

The FICO Bankcard Score 8 is a new credit score used by credit card companies to determine credit card worthiness. Note that this is a score solely based on your worthiness of a credit card and not a home loan, auto loan or personal loan. Some that have a high credit utilization on credit cards may have a FICO Bankcard Score 8 under 650 but have a credit score that is over 720. The only way to know your true credit score is to purchase one from Equifax, Experian or Transunion.

If you are looking to buy a home in California any time in 2015 or 2016 it might be worth it to consider purchasing a credit score and credit history report. You can get a free credit history report from annualcreditreport.com but this report does not have a credit score. If you have any questions related to mortgage interest rates and your credit score reach out to us today. We have mortgage professionals that can help you get into the correct mortgage products or programs for your current financial situation.

We also suggest you check out our California FHA mortgage rates page so you can stay up to the second on average mortgage rates. Note that mortgage rates are changing on a consistent basis so come back to ABLEnding to get the latest news and rate quotes.