Your 700 Credit Score is Good, But Is It Good Enough?
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Lexington Law
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports. Visit http://www.lexingtonlaw.com for more information. By Lexington Law
Published on 02/5/2009
A 710 credit rating is decent, but it isn't good enough to get you approved for the <a href="http://www.lexingtonlaw.com/blog/mortgage/good-credit-score-refinancing-mortgage.html">best interest rates when refinancing your home</a>. Lending requirements have become much more strict so you may need to work on improving your credit score before you can take advantage of today's low interest rates.
Your 700 Credit Rating is Good, But Is It Good Enough?
With interest rates on home loans rates plummeting, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower interest rate and saving loads of cash in the process. On a 30 year loan for $250,000, refinancing from 8 to the record lows in the 5 range that were reported in early 2009 would lower monthly mortgage payments by nearly $500. Over the course of the entire 30 years of the loan, this would amount to over $170,000 worth of savings.
Most people, however, will not be able to qualify for a refinance loan and an even larger segment of the population will not be able to get approved for the best interest rates.
Having a better than average credit rating isn't enough when it comes to getting approved for the best rates on a mortgage refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best interest rates on their loan, borrowers will need a credit score of 740 or better.
For years, consumers working to increase their credit score have been searching for a way to turn a low credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and increasing them to 600, 700, or higher, people found they were able to dramatically improve their standard of living. They were able to get into homes that were previously out of reach and qualify for auto loans or credit cards with reasonable and manageable interest rates.
Today, it is not just those with poor credit who could see benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing market, even those with decent credit scores may be able to benefit from pushing their credit scores even higher.
For those homepwners who are looking to take advantage of the low interest rates, take some time to investigate a variety of lenders and shop around for the best interest rates. Don't get discouraged if you are turned away by one lender because there may still be another who would be more than happy to help you. And if lenders are continually turning you away or not offering the rates you are looking for because of your credit , then making use of credit repair services like those provided by Lexington Law, the trusted leaders in credit repair, may be the first step you need to take in order to reach your goals.
Most people, however, will not be able to qualify for a refinance loan and an even larger segment of the population will not be able to get approved for the best interest rates.
Having a better than average credit rating isn't enough when it comes to getting approved for the best rates on a mortgage refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best interest rates on their loan, borrowers will need a credit score of 740 or better.
For years, consumers working to increase their credit score have been searching for a way to turn a low credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and increasing them to 600, 700, or higher, people found they were able to dramatically improve their standard of living. They were able to get into homes that were previously out of reach and qualify for auto loans or credit cards with reasonable and manageable interest rates.
Today, it is not just those with poor credit who could see benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing market, even those with decent credit scores may be able to benefit from pushing their credit scores even higher.
For those homepwners who are looking to take advantage of the low interest rates, take some time to investigate a variety of lenders and shop around for the best interest rates. Don't get discouraged if you are turned away by one lender because there may still be another who would be more than happy to help you. And if lenders are continually turning you away or not offering the rates you are looking for because of your credit , then making use of credit repair services like those provided by Lexington Law, the trusted leaders in credit repair, may be the first step you need to take in order to reach your goals.