Nowadays, people in American always attach important to the personal credit score. Because in the U.S., if you want to be successful applications for housing loans, in addition to have a formal identity documents, whether you have a good credit history, which is one of the important factors for the banks to review loan application from buyers. So, if there were “tainted” on your personal credit file, it will naturally bring trouble for the mortgage application.
If you own a good credit score, in bank loans, it may bring a lot of help to you. Firstly, it will save the banks’ loan approval time; secondly, in the borrowing rates, duration, amount, etc. may also be benefits. For example in China, some banks provide 7 discounts on the interest rate to the customers, who owe a high degree of personal credit. And if a person has a very good credit and meet the requirements, then the bank may even be offer to individuals the personal credit loans without secured or guaranteed.
From the above the contents?we can see the question of “Does credit score help home loan modification?”, I think the answer is yes. In the United States have special credit rating agencies; they are responsible for collecting people’s credit history, including the repayment of previous loans, bankruptcy taxes and so on. The nation’s largest credit rating agencies are called “Fair Issac”, recently announced a new calculation method of scoring, it will use some “non-traditional” information, such as: bank account information, the company installment loan repayment records.
Records will be added pay rent and other information in future. Fair Issac use such information to provide credit scoring, scores range from between 150-950, the higher the better. In the economic crisis, many people plan to get the loan modifications, but wonder if it would affect the credit score or not. In my opinion, a good credit score can help you achieve this wish. Moreover, I believe that in the future, the bank will support this measure.
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