Your 700 Credit Rating is Good, But Is It Good Enough?

By: Stuart Hunter

With interest rates on home loans rates plummeting, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower interest rate and saving loads of cash in the process. On a $250,000 30 year loan, refinancing from an 8 interest rate to the record lows in the 5 range that were reported in early January, 2009 would reduce monthly payments by nearly $500. Over the course of the entire 30 years of the loan, this would amount to over $170,000 worth of savings.

Most people, however, will not even be able to qualify for a refinance loan and an even larger percentage will not be able to get approved for the best interest rates.

Having a better than average credit score isn't enough when it comes to getting approved for the best rates on a mortgage refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best possible rates , borrowers will need a credit rating of 740 or better.

Traditionally, people looking to improve their credit scores have been trying to find for a way to turn a low credit score into an average credit score or better. By taking credit scores in the 500 range or lower and increasing them to 650 and above, people found they were able to significantly improve their quality of life. They were able to get approved for home loans that were previously out of reach and qualify for auto loans or credit cards with reasonable and manageable interest rates.

Today, a shift has been made where it is not just those with bad credit scores who could benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, even those with above average credit scores may be able to benefit from pushing their credit scores even higher.

For those homepwners who are looking to take advantage of the low interest rates, take some time to investigate a variety of lenders and shop around for the best interest rates. And don't get discouraged if you are turned away by one lender because there may still be others who would be happy to work with you. And if lenders are consistently rejecting your application or not offering the interest rates you want because of your credit rating, then making use of credit correction services like those provided by Lexington Law may be the first step you need to take in order to reach your goals.

Article Source: Loan Info Center

There are steps you can take to fix your poor credit report. To find out if credit repair may be a good solution for you, Lexington Law offers a free, personalized credit consultation. You can receive your consultation by calling 1-800-214-0922.

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