Latest news with #creditscore
Yahoo
a day ago
- Business
- Yahoo
New Survey Highlights Credit Knowledge Gaps Among U.S. Adults
Credit One Bank Launches "The Credit Wreckers" Campaign to Help Consumers Avoid Credit Pitfalls and Build Better Credit LAS VEGAS, July 28, 2025 /PRNewswire/ -- A new survey conducted by Credit One Bank, a leader in the credit card industry, reveals a lack of knowledge of credit fundamentals among U.S. adults who own credit cards. The findings point to critical knowledge gaps in areas such as credit utilization, payment behavior, closing unused accounts and how these behaviors can negatively affect credit scores, underscoring the pressing need for financial education from a credible source. "Financial setbacks can affect anyone but understanding how credit works is a game-changer when building or rebuilding your financial future," said Steve Min, Chief Credit Officer at Credit One Bank. "Our recent survey results revealed that many Americans lack foundational knowledge about credit. By providing education resources, Credit One Bank aims to empower individuals to take charge of their credit health and build a stronger financial future." Survey Findings †The survey, conducted in partnership with YouGov, highlighted critical gaps in credit knowledge among U.S. adults who own credit cards: 72% were unaware that a missed payment can stay on their credit report for up to seven years. 65% were unaware that the maximum amount of available credit they should use at any given time is 30%. 70% were unaware that they should keep their oldest credit card accounts open and use them at least once every few months. 48% were unaware that creditors may close accounts due to inactivity, thus potentially reducing the length of their credit history. 34% didn't understand the difference between a hard and soft credit inquiry. These survey results revealed an opportunity for Credit One Bank to empower people on their credit journey by promoting greater financial literacy. Introducing "The Credit Wreckers" Campaign Today, Credit One Bank launched "The Credit Wreckers," a character-driven campaign spotlighting common credit missteps and encouraging improved credit habits. Each character personifies one of these missteps in a playful, easy to understand and informative way. Max Out: Max Out's eyes are bigger than his wallet. When he sees something he wants, he buys it…and his credit score pays the price. What Max Out doesn't know is that he should only use 30% or less of his available credit, because using his full line can lower his score.1 Miss Payment: Miss Payment means well, but more often than not, she misses her monthly credit card payments. What she doesn't know is that each missed payment can stay on her credit report for up to seven years. If only she would set up Autopay, she'd never miss a payment again.2 Cancelina: Watch out for Cancelina. She just loves canceling her unused credit cards once they're paid off. But what she doesn't know is that canceling them can decrease the length of her credit history and hurt her credit mix.3 "The Credit Wreckers campaign brings to life seemingly small actions that can wreck your credit score without you realizing it," said Amber Greenwalt, SVP of Brand and Advertising at Credit One Bank. "Small, incremental changes can have a big impact on improving credit health. Our goal with the Credit Wreckers is to simplify complex topics, and provide actionable tips, all while making it fun and relatable. Credit building doesn't have to be daunting, and this campaign is about making credit easier to understand for everyone, no matter where they are in their financial journey." The Credit Wreckers campaign comes to life across an integrated ad campaign narrated by actor Chris Parnell. The ads are featured across broadcast and social. To explore the Credit Wreckers campaign and meet the characters, visit For more financial tips, visit Credit One Bank provides credit education resources to help individuals understand and improve their credit health. From in-depth articles on over 20 topics to practical tips and insights, the company is dedicated to equipping cardmembers with the knowledge to help them make well-informed financial decisions. 1 Source: Credit One Bank, "4 Habits People with Good Credit Possess", Source: Credit One Bank, "How Long Does a Late Payment Stay on your Credit Reports", Source: Credit One Bank, "Should I Cancel My Credit Card", Survey Methodology †All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,007 adults, of whom 1469 have a credit card. Fieldwork was undertaken between 28 May - 2 June 2025. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+). About Credit One Bank Credit One Bank is a financial services company and one of the fastest-growing credit card issuers in the U.S. Founded in 1984 and headquartered in Las Vegas, Credit One Bank offers a full spectrum of credit card products including cash back and points-based cards as well as high-yield certificate of deposit and savings accounts. Credit One Bank is also an official partner of the Las Vegas Raiders and the Official Credit Card of NASCAR, the Vegas Golden Knights and Best Friends Animal Society. Learn more at in our Newsroom, or on social media (@CreditOneBank) on Facebook, Instagram, YouTube and LinkedIn. Contact InformationScott MatulisPublic Relations DirectorEmail: 702.957.5327Mobile: 818.451.8918 View original content to download multimedia: SOURCE Credit One Bank Sign in to access your portfolio
Wall Street Journal
22-07-2025
- Business
- Wall Street Journal
Your Bank Might Punish You for Those ‘Buy Now, Pay Later' Purchases
Banks don't want you bingeing on 'buy now, pay later' plans, and they say it might actually hurt your chances of getting approved for a mortgage or credit card. Some of the popular point-of-sale loans from companies such as Affirm and Klarna will be factored into credit scores later this year when FICO rolls out its new scoring model. Using a loan to pay for a couch or a pair of pants in installments might improve your score if you keep up with payments, according to Fair Isaac Corp., the company behind the most widely used U.S. credit score.
Yahoo
19-07-2025
- Business
- Yahoo
How to improve your finances before your first mortgage
Key takeaways Improving your finances before applying for a mortgage gives you the best shot at getting good terms. In evaluating your creditworthiness, lenders consider your credit score, income and other assets, debts, the amount of your debts in relation to your income, and your employment history. Improving your credit score, reducing your debt load and ramping up your savings can boost your financial profile. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes As a first-time homebuyer, you might not have a substantial income or savings to work with. That doesn't mean you won't qualify for a mortgage, however. There are many ways you can prepare your finances to be a more competitive mortgage applicant. Here are three ways to get your finances in shape before submitting a mortgage application. What financial elements are considered in the mortgage process? How do you know you're really ready for a mortgage? There are some signs that might point to yes, according to Freddie Mac. These include: Your credit score: One of the biggest determining factors for mortgage approval is credit score. A credit score of 661 or higher places you in the creditworthy category, according to Freddie Mac. If your score is between 600 and 660, you could be close to being ready for a mortgage but not quite there yet. If your score is 599 or lower, you're likely not ready to take on the additional debt. Your debt-to-income (DTI) ratio: DTI is also significant, and there are two measures. The front-end ratio, which compares your projected monthly mortgage obligation to your monthly income, should be, ideally, 25 percent or less. The back-end ratio — your overall debt, including auto loans and student loans, can be higher, but most lenders like it to be no more than 36 percent, with 43 percent as the max. No bankruptcies/foreclosures: Your credit profile should be free of these blemishes for at least seven years. Timely debt payments: Your credit report should also be free of debt payments that are 90 days or more overdue. Bankrate's take: This isn't to say you won't get approved for a mortgage if you have a lower credit score or don't meet all of the other criteria — you just might be stretching yourself too thin or unable to achieve other financial goals. How to improve your finances before getting a mortgage When you apply for a home loan, the mortgage lender reviews all aspects of your credit and financial profile to assess your risk as a borrower. This includes your credit history and score, employment history, income, debt and savings or other assets. The strength of these factors helps the lender decide whether to approve or deny you for a loan and for how much. Below are three tips to boost your chances of getting approved for the amount you want. 1. Check your credit Well before you apply for a mortgage, it's a good idea to review your credit reports and scores to ensure all information is up-to-date and accurate. You can obtain your credit reports (which don't include your scores) for free once a year from each of the three credit bureaus (Equifax, Experian and TransUnion) through When reviewing your report, keep an eye out for any errors that may be dragging your score down, such as inaccurate reports of late payments or balances that remain on your report that you've already repaid. To correct the error, submit a dispute to the credit bureau. Taking the time to ensure your credit report is accurate can help improve your score. 'You can't fix what you don't know about and the earlier you identify issues, the more time you have to resolve them,' says Brian Vieaux, president of FinLocker, a fintech company that helps consumers prepare their finances for a mortgage application. 'Checking your credit helps you identify surprises, collections, high utilization or errors that can be fixed in advance. Even a 20-point bump in your score could save thousands over the life of your loan.' When you apply for a mortgage, lenders may look at your scores from each credit bureau and base a decision on the middle number. For most mortgages, you'll need a minimum credit score of 620, although some loans allow for as low as 500 or 580 if you have other 'compensating factors,' such as substantial savings. The best interest rates and terms go to borrowers with scores of 740 or higher. 2. Work on your debt To improve your credit score, strive to pay all your bills on time. Nothing dings your score like late payments. If you're having trouble making payments, now's the time to contact creditors or service providers to arrange a payment plan or other form of relief. Along with maintaining a history of on-time payments, start chipping away at any outstanding balances. There are many ways to tackle them, including: Debt avalanche strategy Debt snowball strategy Debt consolidation options Aside from the positive impact on your credit score, less debt lowers your DTI ratio. Lenders take this into account when determining how much to approve you for. It depends on the loan program, but most lenders look for a DTI ratio of no more than 45 percent, although some are stricter and cap it at 36 percent. Others are more flexible, and will allow up to 50 percent. You can use this DTI ratio calculator to get a sense of where you stand. 'Your debt-to-income plays a major role in shaping your mortgage application, impacting how much lenders might be willing to lend,' says Felton Ellington, vice president and community lending manager for Chase Home Lending. 'If a large chunk of your income goes toward paying down debt, that means your DTI is high. Lenders typically want to see that your DTI is low, as it tells them you'll be able to manage your monthly payments with minimal issues.' Lastly, avoid taking on any new loans. This will add to your debt load, which increases your DTI ratio and can potentially dent your score. This is especially so if your credit utilization is already high or you can't handle the additional payments. 3. Get serious about savings Unless you qualify for a no-down payment mortgage, you'll need to be ready with considerable upfront cash. Here are some things to save for: Savings for a down payment – As of April 2025 , the median down payment on a home was $56,100, according to ATTOM Data Solutions, an analyst of property and real estate data. The good news is that you can get away with putting down as little as 3 percent for a conventional mortgage. Closing costs – The amount of closing costs depends on where you're buying, but they generally range from two to five percent of the purchase price. Nationally, the average closing costs were $6,905 in 2021, the latest year for which figures were available. Moving costs – Be sure to budget for moving costs as well, especially if you plan to hire a moving company. General reserves – It's a good idea to set aside a portion of money to pay for costs like furniture or home repairs. An emergency fund – This should equal about three to six months of your living expenses. 9% The percentage of a home purchase price that first-time buyers typically make as a down payment. Source: National Association of Realtors Even if you don't know your homebuying budget or how much house you can afford yet, start saving now. Here are some strategies: Put funds earmarked toward the home purchase in a high-yield savings account. Avoid or cut back on eating out and other discretionary expenses. Cancel unnecessary memberships, services or subscriptions. Sell items you no longer need or want, such as clothing or furniture. You can also accelerate savings in other ways as well.'One of the best things you can do to save for a home is make practice payments,' says Mason Whitehead, a home loan specialist with Churchill Mortgage. 'If you are paying $1,500 for rent and you think you can afford a $2,500 mortgage payment, start living that way now and put the extra $1,000 — in this scenario — into savings and live like you had that obligation now.' What if I can't improve my finances? Due to income, you might be limited in how much you can put toward debt or savings. That's OK — this could simply mean you need to wait to become a homeowner or need more time to get established in a career and build your earnings. In the meantime, do everything possible to maintain your credit score. If you can't afford or don't qualify for a mortgage now, with good financial habits, you'll be able to in the future. FAQs How much money should you have before buying a house? The amount of money you should have before buying a home depends on your budget (your income, your other obligations), how much home you'd like to buy and the amount of cash you can afford to pay upfront. When buying a home, you need to have enough money for a down payment and closing costs. It's also important to have money for moving costs and enough savings as a cushion for emergencies. Is $50,000 enough to buy a house? Not outright, certainly, but it's about enough to cover a down payment. The median sale price of a home in May 2025 was $422,800, according to the National Association of Realtors, and the average down payment is 15 percent as of 2025. A 15 percent down payment on the median-priced home would amount to $63,420. That figure does not include closing costs or moving expenses. When should I start saving for a house? The sooner you can start saving for a house, the better. But if you have a lot of debt, it may make more sense to pay down some of it before saving for a house to have a better DTI ratio and qualify for better mortgage rates. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
19-07-2025
- Business
- Yahoo
What is a credit report, and how do you read one?
If you've had a credit card or a loan at any point in the last seven years, you probably have a credit report. Credit reports are important financial documents that have information in them about how you've managed your debt, including whether or not you've made your monthly payments on time. Knowing how to pull and read your reports is a key financial skill, since it can help you improve your credit scores and catch signs of identity theft. Yet, in my work as an NFCC-certified credit counselor and financial educator, I've found that people are confused by the information in their credit reports. So here are some tips for tackling these important documents and understanding what's inside. This embedded content is not available in your region. What is a credit report? A credit report is a document that details your history with debt over the last seven to 10 years. This includes your credit cards and loans, and any bills that turned into collection debt if you fell behind on the payments. Credit reports help lenders, landlords, insurers, and others assess your creditworthiness, or how likely you are to repay borrowed money and generally meet financial obligations. How does information get into your credit reports? Banks, credit card companies, and lenders report your payment behavior regularly. to the three national credit bureaus (Experian, Equifax, and TransUnion) each month. However, some creditors don't report information to all three bureaus, so it's normal to find differences between your reports. View a sample credit report from Experian>> What information is on a credit report? Credit reports have detailed information about your debt accounts and how you've managed them. Here's what you'll find inside, and how to make sense of it all. Personal information Any identifying information you've included in a past credit application can show up in your credit reports. This information is meant to help verify your identity when someone wants to pull your reports. Here's what's included: Name (including names you've used in the past) Date of birth Social Security number Addresses Phone numbers Names of landlords Employers who ran credit checks on you in the prior two years Account details Your credit reports contain extensive details about your credit cards and loan accounts, including the dates each one was opened, how much you owe, and whether or not the accounts are closed. You'll typically see these accounts split into one of two categories Satisfactory accounts: These are accounts where you've made all of your payments as agreed. Satisfactory accounts stay on your credit reports for 10 years after they're closed. Adverse accounts: This category sounds a little misleading, since it can include accounts that are in good standing. If you've missed just one payment on the account, even if you're current on your payment now, the account will stay in this category for seven years from the date of the missed payment. To help ensure you understand everything in your reports, here are a few common account terms in credit reports that might not be familiar: Primary holder: You're the main account user, and you're legally responsible for repaying the debt. Authorized user: You have access to the account but are not legally liable for the debt. Secured: The debt is backed by collateral (such as your home or car). Unsecured: The debt is not backed by collateral. Revolving: Available credit on the account can increase or decrease as you charge transactions and subsequently pay down the balance (credit cards and other lines of credit). Installment: The balance on the account is paid off in monthly payments. Current: You're up-to-date on your payments. Payment calendars For each debt account, you'll see a calendar that has information about your past monthly payments. In my experience, this is usually the hardest part of the credit report to read, particularly if you've never seen a credit report before. But it's actually pretty easy to understand with a little information. For each month on the calendar, there will be a note that represents the status of your account. Here's a breakdown of the notes you might see: Green box or "OK": You made your payment as agreed. Numbers: Numbers, such as 30 or 60, represent how many days late you were/are on the payment. On some reports, the numbers appear in yellow or red circles. Blank: The creditor did not report your account information that month. This does not reflect negatively on you. Other: Any other note usually means the account was closed due to severely overdue payments. For example, "C/O" means it was charged off, and "COL" means it went to collections. Some credit reports have keys that are helpful, since they explain the meaning of each note that appears on that report. Public records This section is where bankruptcies are recorded. (In the past, certain other public records such as civil judgments and tax liens were also included, but these no longer appear on credit reports.) If you've filed Chapter 7 bankruptcy, it will appear here for 10 years after you file. Chapter 13 bankruptcy stays on your reports for seven years after the date you file. Collections If you have an unpaid debt or an overdue bill, and the account gets sent to collections, it could show up in the collections section of your credit reports or the "Adverse accounts" section. The collections section will have important information for anyone who wants to settle their debt, and for people who want to verify that a debt collector is telling them the truth about their debt. This includes: Contact information for the collection agency Name of the original creditor Original amount owed Current balance Date the account is scheduled to be removed from your reports Inquiries Inquiries refer to instances where a person or company pulls your credit reports. There are two types of credit inquiries you may see on your reports, and each one impacts your credit scores differently: Regular or 'hard' inquiries: Your credit was pulled in order to determine if you qualify for new credit. Hard inquiries typically have a minimal impact on your credit. However, many hard inquiries within a short period of time can have a larger negative effect on your credit (with the exception of rate shopping), though the effects lessen with time and generally fall off your reports within two years. Account review or 'soft' inquiries: Your credit was pulled for informational purposes. For example, you pulled your own credit reports. These inquiries do not impact your credit scores. Summary of rights At the end of your credit reports, you'll see a long list of information about your rights as a consumer. If you find an error in your credit report, this section provides instructions on how to file a dispute, which is the process for getting incorrect information updated or removed from your reports. Up Next Up Next More tips for reading credit reports In my experience reviewing thousands of credit reports with consumers, I've found that most people find their reports confusing and even overwhelming at first. Here are a few more tips to make the experience manageable. Don't let long reports scare you Most credit reports are just a few pages long, but for people who took out federal student loans several years back, for example, their reports can be dozens of pages long due to the detailed payment calendars. If this is you, try not to panic when you see your reports. As long as the information is correct, the length of your credit reports is nothing to worry about! Be confident in what you know Regardless of the length of your credit reports, the most important thing to remember is that credit reports should only reflect the facts. If you slow down and read each item one by one, you'll start to realize that you're already aware of most of the information, even if you've forgotten some of the details. Ask for help If you give your credit reports a good read and you're still a little confused (which is not terribly uncommon), you can get professional help. Set up a free call with an NFCC-certified credit counselor, and they'll help you break down the details. Why your credit reports matter A healthy credit report is like a passport to financial opportunity. If you've managed your debt responsibly, your credit reports will show that, and you're more likely to be approved for good credit cards and loans, and even for new apartments or certain jobs. If you've missed lots of debt payments or you have multiple accounts in collections, the negative information will follow you for several years. On top of that, your credit score calculation is based on the information in your credit reports. And if you don't have good credit scores, you'll pay higher interest rates on new credit, or you may simply be denied when you apply. How to get copies of your credit reports There are tons of sites online that sell credit reports, and some will even give you one of your reports for free. But the only source I recommend using is This website is a federally backed service that lets you pull your full credit reports, not just summaries, from all three credit bureaus for free. You can pull each of them once a week, although you don't need to review them that often (once a year is fine for most people). If you're unable to pull your reports via the website, you may be prompted to send in a request by mail. But before you do that, try calling 877-322-8228 to see if you can request the reports by phone instead.
Yahoo
18-07-2025
- Business
- Yahoo
See how your credit score impacts your mortgage rate
Since 30-year mortgage interest rates plunged in 2021, potential home buyers have been comparing prevailing home loan interest rates to historic lows. It's easy to understand. Rates in the 2% to 3% range happened less than four years ago. They are permanently imprinted in our brains. Current mortgage rates, pushing 7%, have been around for about three years — but hadn't been previously seen since 2007. Even so, you can lower the mortgage rate a lender offers you by as much as 1.25 percentage points by increasing your credit score. In the best-case scenario, that could save you over $91,000 in interest over the life of a $300,000 home loan and reduce your monthly payment by over $250. (Based on the interest rate difference from the lowest to the highest credit tier on a loan with 20% down and one discount point, which we'll dive into below.) This embedded content is not available in your region. Learn more: The minimum credit score needed to buy a house Mortgage rates by credit score: July 2025 Compiled by Curinos, a data and analytics company for here are sample average national mortgage annual percentage rates (APRs) by credit score tier as of July 2025. At the time of writing, the average APR listed is the same once your credit score hits 700. But keep in mind that this won't always be the case, and these rates are not guaranteed. Your credit score is a major component in determining your mortgage rate, but factors such as your debt levels and down payment size also play a role. How does your monthly mortgage payment change by credit score? The table below shows the representative credit score tiers with sample monthly mortgage payments and the total interest paid over a 30-year term, using the same loan parameters as above. Read more: How much is the monthly payment on a $300,000 mortgage? Up Next Up Next Other factors that impact your mortgage rate In addition to your credit score, mortgage lenders will consider such factors as: Your debt-to-income ratio. DTI ratio is calculated by dividing your total monthly debt by your monthly income before taxes and deductions. The loan-to-value ratio of your mortgage. LTV ratio is the amount of your mortgage compared to the market value of the home. It is primarily a function of your down payment. Your down payment amount. The more money you put down, the lower your LTV ratio. That gives a lender more pledged collateral to work with. The more security a lender has, the better your mortgage rate may be. The length of your loan. Called the 'loan term,' the repayment period can certainly impact your mortgage rate. A 15-year fixed mortgage loan has a lower rate than a 30-year fixed-rate mortgage. Dig deeper: How to choose between a 15-year and 30-year mortgage term Mortgage rates also vary by loan program The most common mortgage is a conventional loan. Lenders issue conventional loans based on qualifications set by government-backed companies Fannie Mae and Freddie Mac. The mortgage rates you see above are for conventional loans. However, there are other loans that are backed by government agencies, such as: USDA loans for suburban and rural mortgages FHA loans, often used by first-time home buyers of modest financial means. VA loans, issued to borrowers with military connections. Of all these loan types, VA loans often have the lowest mortgage rates. Keep reading: The best VA mortgage lenders right now Mortgage rates by credit score FAQs What is the 800 credit score mortgage rate? As of July 16, 2025, an FICO 800 credit score will earn you a 6.644% mortgage rate. This is based on a national average, and your home loan rate could be higher or lower, depending on your down payment, the property's location, and your credit profile. What credit score is needed for a $250,000 house? With an FHA loan, you may qualify to buy a $250,000 house with a credit score as low as 500, with 10% down. A conventional loan will likely provide a lower mortgage rate, but you'll need a 620 FICO score to be eligible. Will interest rates reach 3% again? Historically low mortgage rates of 3% and below resulted from aggressive interest rate cuts by the Federal Reserve in reaction to the COVID pandemic. For rates to sink that low again would take an equally serious threat to the nation's economy. What is a good mortgage rate right now? A good mortgage rate would be in the 6.77% range or lower. That's the median rate based on the current mortgage rates by credit score shown above. Freddie Mac reports that the average 30-year mortgage rate is 6.72% as of July 10, 2025. However, that rate may include fees and discount points. Laura Grace Tarpley edited this article.
