- You need to have perfect credit to purchase a home: Your credit score does influence your ability to get a home loan, especially what interest rate you get, but perfect credit is not necessary to secure a home loan. The higher your credit score, the better chance you have of getting a loan with a favorable interest rate.
- Lenders have the freedom to share your personal credit information: In order for a lender to share your information with an affiliate, they usually need to get your permission first. Both state and federal privacy laws exist to protect your personal information.
- Lenders only use one credit model to evaluate your credit: There are a variety of credit scoring models used to evaluate credit risk. Although scoring models can vary, factors that affect your credit score include payment history, length of credit, and the amount of debt you have.