Your 720 Credit Rating is Good, But Is It Good Enough?
- By Stuart Hunter
- Published 02/5/2009
- Mortgage
- Unrated
Stuart Hunter
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.
View all articles by Stuart Hunter
With mortgage 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 $250,000 30 year loan, refinancing from an 8 interest rate to one of the great interest rates in the 5 range that were reported in early 2009 would lower monthly mortgage payments by nearly $500. Over the course of the entire loan, this amounts to over $170,000 worth of savings.
The majority of 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 good credit score simply isn't good enough when it comes to getting the best rates on a 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 rates on their loan, borrowers will need a credit score of 740 or better.
Traditionally, consumers working to increase their credit score have been searching for a way to turn a low credit score into a fair 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 scores who could see benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, 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 number 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 interest rates you want because of your credit rating, 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.
The majority of 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 good credit score simply isn't good enough when it comes to getting the best rates on a 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 rates on their loan, borrowers will need a credit score of 740 or better.
Traditionally, consumers working to increase their credit score have been searching for a way to turn a low credit score into a fair 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,
Today, it is not just those with poor credit scores who could see benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, 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 number 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 interest rates you want because of your credit rating, 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.
