Released: October 07, 2007

Credit scores need be good, not perfect

Source: Washington Post (Free Registration)

Whether you’re considering buying a new home or refinancing an existing mortgage, credit scores matter more than ever. To find out what consumers need to know about their credit reports and scores to get the best deals, The Washington Post’s Mary Ellen Slayter recently spoke with personal finance columnist Liz Pulliam Weston, author of “Your Credit Score: How to Fix, Improve and Protect the 3-Digit Number that Shapes Your Financial Future.” An edited transcript of the conversation follows.

Q What’s the most important thing consumers need to understand right now about credit scoring and mortgages?

A Higher scores are always better. It used to be that if you had a bad score, you could still get the loan, you just had to jump through a few hoops. That’s not as likely now. Standards have tightened all the way across the board, but they also seem to be changing on a day-to-day basis. The minimum score is higher. Until very recently, subprime was 620 and below. Some lenders are now setting that minimum at 660.

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