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Federal law allows you to get your credit report free once per year. To do so, go to annualcreditreport.com and request your report. You need to do this at least once a year so that you can correct any errors or missing information.
You typically have more than one credit score depending on its use. Two of the most common are the Vantage score and the FICO score. The Vantage score uses a different algorithm from the FICO score. Places such as your employer, auto insurance company or landlord typically use the Vantage score or one similar to it. Housing lenders more often use the FICO score. FICO has as many as 60 different scoring algorithms, as does Vantage scores.
Currently, both scores range from about 300 (low) to 850 (best). In general, both Vantage and FICO use your payment history, the age of your accounts, balances versus available credit, type of debt you hold and how frequently you seek credit based on recent applications.
Types of debt can be revolving, such as a credit card; secured, like a home or auto loan; personal debt as when you take a consolidation loan, medical and education loans.
While your credit report is free once a year, your credit scores from the three leading suppliers (Equifax, TransUnion and Experian) are not. But frequently, your bank, credit union, credit card providers and other financial institutions offer the opportunity to get them free. You should utilize these promotions as often as you can to keep on top of your score.
Each car payment you make — or when you pay off a credit card — changes your score. It could change by several points overnight too. Since credit “age” affects your score, don’t close old accounts. Periodically make a charge and then pay it off to keep that account active and in the mix.
New laws make it easier to see which score a lender uses too, so if you’re denied credit or offer a higher interest rate than you think you should be getting, you can check it out. When the two scores (Vantage and FICO) differ by a lot, you need to check your credit report to see what might be wrong. While it could just be the closing day of a credit card accounting cycle, it could also be something more serious like identity theft.
The closer you get to purchasing a home, the more you need to be on top of your scores. Don’t wait to review them because a problem can take a while to fix.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with The Goss Real Estate Group for many years. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
