Home | List of Articles | Submit an Article | Contact Us

California Bad Credit Loans - Exploring FICO Scores

An individual’s credit score is a number that ranges from 850 (perfect) to 300 (very poor) and is used by financial institutions to judge the level of risk of a borrower. Lending institutions use credit scores to determine interest rates and credit limits for a borrower. A borrower’s credit score is based on a number of factors within a credit report. By far, the most popular credit score is FICO, which is determined by the Fair Isaac Corporation. The three major American credit reporting agencies (Equifax, Experian and Trans Union) all use variations on this scoring formula under different names, the best-known of which are the Beacon score and the Emperica score.

Determinants of a FICO Score --

• On time (or late) payment of financial obligations and debts – 35%

• Ratio of current revolving debt (ex: credit card balances) to the total available revolving credit (ex: credit limits) – 30%

• Length of time of credit history -- 15%

• Types of credit used (installment, revolving) –10%

• Credit levels obtained in past – 10%

(Note: Current income and employment history do not influence a FICO score. Other factors can affect a borrower’s FICO score. Any outstanding balance due to a tax lien, court judgment etc. will negatively affect the score. Excessive credit card accounts or consumer finance accounts will similarly lower the FICO score. Finally, lots of recent credit checks will lower the score.)

California Bad Credit and FICO

If you are below a 560 FICO score, you are considered to have bad credit. Bad credit in states such as California makes it difficult to acquire mortgage loans that are typically in excessive of $100,000. Private money lenders are often the only lenders that will loan to borrowers whose FICO score is under 600. However, for borrowers with a sub par FICO score, there are companies that will work with you to improve your FICO score.

Corey Senn is a Senior Partner with Bad Credit Lender, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private California bad credit loans, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the California Home Mortgage Loan web blog.

Related Articles:

Bad Credit Mortgage – Sometimes Bad Credit History can be Rewarded - Picture it. Your first home. Your dream home. The home that you, yourself, are going to construct. However, you find that you are in a bit of a financial bind. There is no need to fret; the funding for your new home is available through various new home construction lenders.. Although construction loans can b ...

Credit Problems? With a Subprime Mortgage Lender, Poor Credit is Not a Problem - Have you been turned down for a home loan recently because you have a bad credit history? You may want to consider applying for home financing with a subprime mortgage lender. A subprime mortgage lender is one who specializes in providing financing for people who are difficult for most mortgage companies to financ ...

Bad Credit Mortgage Refinance - If you are looking to refinance your mortgage but believe you will be unable to because your credit may be challenged by late payments, bankruptcy, charge offs, or unpaid medical bills to name a few, don’t worry, there is hope.. There are literally thousands of lenders across the United States that specialize ...

Bad Credit Mortgage Refinance Loans - A look at Mortgage Refinance. Suppose that you are a home owner and have an existing mortgage or loan on a certain piece of property. Interest rates are always changing and, during certain cycles of the market, you notice that you could be saving money on monthly payments by taking advantage of these lower in ...

How To Find The Perfect Bad Credit Mortgage Loan And Bad Credit Mortgage Company? - A look at Mortgage Refinance. Suppose that you are a home owner and have an existing mortgage or loan on a certain piece of property. Interest rates are always changing and, during certain cycles of the market, you notice that you could be saving money on monthly payments by taking advantage of these lower in ...

A Guide To Bad Credit Loans - Gone are the days when ‘bad credit’ was considered as a taboo. In today’s expensive world it has almost become a way of our life. This fact is further confirmed by the report of a recent survey which states that almost one fifth of the adult population fall under the trap of bad credit loans. However, this figure ...

For a Complete list of Articles with summaries Click Here