What the Mortgage Credit?!! (Episode 19) S2 E4

2021-04-27

Download 42

Watch on YouTube: https://youtu.be/S7Dnwkvodro Credit scores need a little more explaining when it comes to a mortgage. What's "good enough" credit for a loan? What elements influence your credit score? How do you raise your credit score? 0:48 - What's a credit score? ...How likely are you to pay back a loan?1:35 - Most lenders use a FICO 8 score. Car loan credit is different than mortgage loan credit.2:16 - How credit scores are computed. Mostly payment history and credit utilization. Then age of ...

Watch on YouTube: https://youtu.be/S7Dnwkvodro

Credit scores need a little more explaining when it comes to a mortgage. What's "good enough" credit for a loan? What elements influence your credit score? How do you raise your credit score?

0:48 - What's a credit score? ...How likely are you to pay back a loan?
1:35 - Most lenders use a FICO 8 score. Car loan credit is different than mortgage loan credit.
2:16 - How credit scores are computed. Mostly payment history and credit utilization. Then age of credit, credit mix, and inquiries.
2:26 - Payment history is the biggest one. Good payment history means you're paying on time and if you have "derogatories" (lates, and delinquents).
3:35 - Explanation of the biggest elements of credit: history, credit utilization, and length of credit.
5:00 - You're not responsible for fraud in your credit.
6:30 - If you want to work the system like a credit ninja, pay down your credit utilization to 50%, 30% or 25% a week BEFORE your bill is sent. DO NOT pay off your credit before your bill comes.
8:15 - Get 2 credit cards to build your credit.
9:25 - Types of credit. Revolving credit builds your credit fastest.
11:45 - Number of inquiries. What's a soft pull? What's a hard pull?
14:24 - Some examples. 580 credit score. Foreclosures are WAY more common with a 660 credit score or lower.
17:54 - Getting a loan with no credit...it's expensive and painful. Credit scores allow you to get a loan the quickest, the easiest, and the most cost effectively.
20:13 - 640 credit score example. Better loan than 580 credit score, but still not great loans.
20:57 - 740 credit score example.
22:07 - 780 credit score example. Is an 820 better than a 780? In lending, no. But you feel better about yourself!
23:47 - To raise your score, contact your lender, and do what they tell you to do. "I fix credit for tacos."
24:29 - What'd we learn today?
24:55 - Like, comment, and subscribe, and your credit score will go up a million points.
25:18 - Bloopers.