Charlotte, N.C. (PRWEB) August 10, 2007
Loans are becoming increasingly difficult to obtain as lending standards tighten. This makes it extremely important for a borrower to fully understand their credit score, particularly when applying for major debt like a mortgage.
A credit score is an important number that lenders use to determine how likely you are to repay a loan. Once you know your credit score, check out the following information brought to you by LendingTree.com:
720 and above: You have excellent credit and will probably be eligible for the best rates lenders can give. Given your strong credit, it's best for you to shop around and demand the best deal.
675 to 719: Although you are probably not approved for a lender's best rate, you should have little trouble finding a loan. You should expect to pay up to half a percentage point more than someone in the top credit category and make sure you can provide documentation.
620 to 674: Considered a below-average credit score, you will likely end up paying a premium on your loan - up to 2 percent more than borrowers in the top category. If you make your payments regularly and improve your credit score, you should be able to refinance to a better rate.
Below 620: You are considered a sub-prime borrower. In today's market, the amount of lenders who offer sub-prime loans is diminishing so if you can obtain a loan, you will end up paying high rates to secure those loans. If your credit score falls into this category, you might want to consider paying down some debt to improve your score and qualify for a lower rate down the road.
To learn more about your credit report and score, check out the LendingTree Smart Borrower Center.
About LendingTree, LLC
LendingTree, LLC is the nation's number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, credit cards and high-yield savings accounts via http://www.lendingtree.com and 800-555-TREE.
Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC also owns and operates LendingTree Loans sm, LendingTree Settlement Services, LLC, GetSmart®, and HomeLoanCenter.com. LendingTree, LLC is an operating company of IAC.