People have different credit types. Some people have good credit, others have bad credit and some have no credit at all.1
GOOD CREDIT : It typically means you pay your bills on time and do not have much debt. Good credit could give you more loan choices and easier access to credit with lower interest rates.
BAD CREDIT : It usually means you had late payments and have a higher debt amount. By having a bad credit score, you could have fewer loan choices and might pay a higher interest rate.
NO CREDIT : This means you probably have not borrowed money, have not had credit and/or don’t have a payment history. Similar to the consequences of bad credit, it may be more difficult to find loan choices. You may also need to pay a higher interest rate.
Each credit reporting company creates a credit score. The range varies, but it usually goes from about 300 (low) to 850 (high). To the right is a graph showing the FICO score ranges.2
Credit plays an important role in the mortgage loan process, but credit challenges don’t always mean you can’t buy a home. Learn more about our DHI Mortgage Home Buyers Club and how they can help put you on a path to successful homeownership!
1Source: https://www.consumer.gov/articles/1009-your-credit-history#!what-to-know.
2Source: https://www.experian.com/blogs/ask-experian/infographic-what-are-the-different-scoring-ranges/.
The DHI Mortgage Home Buyers Club does not guarantee to raise credit scores or guarantee loan approval. Credit education offered by the DHI Mortgage Home Buyers Club does not assure participants that they will qualify for, or successfully obtain, a home mortgage loan. Participants are not required to finance their home purchase through DHI Mortgage or to purchase a home from DHI Mortgage’s affiliated builder, D.R. Horton, to enroll in the DHI Mortgage Home Buyers Club. Participants must complete a HUD approved homebuyer’s education course at their own cost as a prerequisite to participation in the DHI Mortgage Home Buyers Club. See your DHI Mortgage Home Buyers Club Credit Consultant for full details. HUD = U.S. Department of Housing and Urban Development.