Jason DeRousseau

Rice Lake, Wisconsin
Broker/Owner
715-296-6368
Contact Me

Quick Search


view all


Any

Any

No Min.

No Max.

Your FICO Score

Choosing a lender isn't the first step in becoming a homeowner. In reality, the home buying process begins with your finances.Without a reasonable credit score, entering into a loan for a house is harder and, you could find yourself renting for another couple of years in Rice Lake until your FICO score is acceptable.

The Fair Isaac Company bases your FICO score on the summary of your total credit history. Most people usually have a score of 600, but scores are tiered from 300 to 850. With the change in the economy, however, some people have seen their score lowered after loss of employment, charged off credit card accounts, or credit card accounts that were closed because they don't carry a balance. Some of the pieces in determining your FICO score include:

  • Credit to Debt Ratio — How much do you owe versus your available credit?
  • Credit Inquiries — Do you have too many open accounts?
  • Types of Credit — Do you have a healthy mix of credit cards and loans?
  • Payment History — How many late payments have you made?

When you apply for a mortgage or any other loan, lenders want to make sure that extending a loan to you isn't a risk. Your credit score gives lenders a view of what type of borrower you'd be solely because of your credit history. You'll need a score of at least 700 to get a decent interest rate. You'll still get approved for a loan with a lower score, but the interest accumulated in the long run could be more than double the amount of someone with a higher FICO score.

Staying on top of your FICO score is the best way to ease into buying a home. Call us at (715) 736-7000 and we can help you get on the right track to the home of your dreams.

You want an improved score, but how do you get it? Improving your FICO score takes time. It can be difficult to make a significant stride change in your credit score with quick fixes, but your score can improve in a year or two by keeping tabs your credit report and by using your credit wisely. The most important thing is to know your FICO score. You'll improve your credit score by using these tips:

  • Apply for service station cards or store credit. For those who have no credit or low credit, chain store credit cards and gas credit cards are ways to get credit, increase your spending limits and keep up your payments, which Raise your FICO score  to buy a home in Rice Lake with RE/MAX Advantage as your REALTOR - (715) 736-7000will raise your FICO score. You should always beware of keeping a large balance for too long because these types of cards usually have a larger interest rate.
  • Keep your cards in rotation. Whether you're just getting started with credit, or if you've got older cards, be sure to use your cards to make sure your accounts maintain an active status. But, make sure you pay them off in no more than two or three payments.
  • Stay on top of payments. Late payments hurt your FICO score. It's one of the reasons people who have recently been unemployed see the biggest hit in their credit score. Yes, it takes longer to build up your credit with payment history, but it's the most reliable way to show that you're responsible enough to make payments to a bank.
  • Correct your credit report. If you find incorrect items on your credit report, contact the bureau asking that the item be removed. If you have a common name or the same name as a family member, you'll want to give extra care to make sure the activity reported is correct.
  • Spread your debt around. At first, this doesn't seem like a good idea. But, you steer clear of having one card that is maxed out and have the rest of your cards at a zero balance. It's better to have each of your cards at a smaller balance than to have all of your debt sitting on one card.

Now that you're better informed about credit reporting, you'll be able to successfully take the first steps to homeownership, and that is improving your FICO score. Remember that when you're ready to apply for a loan to purchase a home, you'll want to keep your applications within a two-week window to avoid damaging your credit score. With the help of RE/MAX Advantage, the loan process is sure to go more smoothly so you, too, can become a homeowner.


RE/MAX Advantage | 715-736-7000 | Contact Us 
1810 S. Main Street - Rice Lake, WI 54868
Copyright © 2018, All Rights Reserved

house realtor mls

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu