Thursday, August 6, 2009

How to determine joint credit score?

my wife%26amp;I have both average credit scores,how can we find out together what our score would be for a home equity loan?What is the formula ?



How to determine joint credit score?

Both of your individual credit scores are used in underwriting for a loan if you apply jointly.



Thus, whatever your scores are...that%26#039;s what is used by the lender. They don%26#039;t %26quot;join%26quot; your credit scores. Essentially, the lower credit score is used to help determine the creditworthiness of the applicants.



How to determine joint credit score?

The bank is going to pull a Tri-Merge report for the both of you. They are going to use both of your middle scores and take the lowest of those two.



Example:



Him. Exuifax - 657 Experian - 702 TransUnion - 691



His Middle Score is - 691



Her Exuifax 692 Experian - 690 TransUnion -700



Her Middle Score is - 692



His 691 is the lower score so that is what the lenders will use as a qualifier (There are exceptions)



Hope this helped.

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