FICO scores drop nationwide
A new home, a new car, even something as simple as a new credit card, all becoming harder for Americans to obtain.
Glenn Reynolds, Vice President and Mortgage Loan Manager for Arvest Bank, says, “Ever since the financial situation started in the last two years they’ve tightened up the minimum credit score to be able to get all types of credit.”
Reynolds says these days your credit score needs to be above 620 to get a loan. The ideal credit score is 740. He says, “Right now, if you have a credit score under 620 you can’t get a home mortgage.”
Unfortunately a new study shows 25-percent of Americans don’t meet that standard. Bob Moore Infiniti Business Manager Rebecca Addison says lower credit scores don’t only impact home loans, but car loans as well.
Addison says, “Due to the nature of what has gone on in the economy we have seen a significant difference in credit scores.”
Reynolds says the wave of foreclosures across the country is behind the credit score drop. That isn’t a huge problem in our state, but nevertheless he’s had to turn some customers away when that low FICO pops up. So, if a big purchase is in your short-term future, know your FICO score before you shop.
Addison says, “See exactly if now is the time. Maybe you need to build your credit get it back up before you come in and purchase a vehicle.”
Waiting a few months could not only give you time to improve your score, it could help you to get a better financing deal, as well.
Posted by Credit Professor
on Jul 17 2010. Filed under Credit News.
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