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Credit Help

Please Take Note: Churchill Mortgage provides credit services for the purpose of pre-qualifying for a mortgage loan only. We do not engage in credit “repair” services, but have access to advanced tools that allow us to analyze your credit to identify actions that have the potential to improve your score. In no way do we engage in the deletion or altering of accurate information on a consumer’s credit report, and strongly advise consumers to avoid any person or organization that makes such claims.

Good credit is important in America today because so many of the things that we want to buy must be financed or purchased on credit.

And once you have had a bad credit rating it is almost impossible to avoid detection.

A network of credit reporting agencies keeps track of every person who buys on credit. Each time you apply for credit, the prospective lender will check your credit with at least one of these agencies.

But Did You Know...both Employers and Insurance companies also make determinations about you based on your credit? That means that you could be paying higher insurance rates, or be passed over for that better job or promotion because your credit is unfavorable. We estimate the average person with below prime credit scores could be penalized $12,924.00 or more each year for low credit scores! (See our Free "Credit Action Kit" below for more info)

It is easy to see how low credit scores have the ability to hold a family down, and keep you from getting ahead.

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How Do Credit Scores Work? (The Basics)

A Credit Score is a number assigned to a consumer that, based on 5 principal determining factors, statistically determines the probability that you will become 90 days late or more on any loan obligation over the next 2 years.

** If you do not have a credit score and will apply for a mortgage loan, you need to read this - What 'No Credit Score Borrowers' Need to Know

- The FICO score is the most widely used scoring system, and is what most mortgage lenders use.

- There are three (3) major credit bureaus in the U.S. who have business relationships with thousands of creditors across the country, and that is why you may have three "scores" that are being reviewed.  Those creditors will "report" the information they have about you to these credit bureaus at various times.  They do not have to report their information to the bureaus, and some creditors only report to one or two of the bureaus.  Therefore, it is very hard to increase your credit score if you don't know to whom your creditors are reporting.

- A credit score is calculated by taking all of the various information about your credit profile and running that data through a computer model, where points are added and subtracted based on a "perfect" credit model.  (This "model" is proprietary information to the FICO organization)  Once the calculation is complete, out pops a credit score for that bureaus' credit file on you.

- When we are referring to your credit score in the mortgage business, we are talking about the middle score out of the three (not an average, but the actual score that is not the highest or lowest).

- Credit scores are affected by almost everything about your credit data, ranging from the length of time you have had an account, to the ratio of the balance available vs. the balance owed.  And of course there is the obvious negative impact of any deragatory history.

The Good News - Rebuilding Your Credit

If you are one of the millions of Americans who have had credit problems, do not despair. Even with negative items in your credit file, such as late payments, liens, or bankruptcies, there are some things that you can do to rebuild your credit.

But you need a strategy to follow that really works.


WARNING:
Some seemingly positive actions to your credit file can actually
LOWER YOUR CREDIT SCORE.

Trying to improve your credit score by yourself without specific information can have the opposite effect, and cost you. And most loan officers are still incorrectly advising borrowers based on second-hand information and just plain bad advice. Many have the best intentions to help, but have failed to spend the time to research just how the scoring software works.
That is why it is so important to work with a Loan Specialist who has studied the scoring system and can show you how to work with the credit bureau to discover any opportunities to improve your scores, while avoiding the common mistakes.

Sometimes, increasing your credit score may only require a careful review of your credit report by a Credit Score Specialist. During this analysis, we may identify items that can be disputed or rearranged. Taking this action could increase your scores significantly.

In fact, by working with our credit reporting agency one customer was able to raise their score 100 points in just a few business days by adjusting only one account.


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