The hottest Credit Scores Substack posts right now

And their main takeaways
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Top Finance Topics

Credit Scores Explained

Concepts of Finance 🧠 • 419 implied HN points • 30 May 24
💰 Finance Credit Scores Debt Management Financial tools
  1. Your credit score is a quick way for companies to see how likely you are to pay back a loan. Better scores mean you’re seen as a lower risk.
  2. Paying off loans can sometimes lower your credit score because it can reduce your credit mix. But over time, responsible spending will help your score go back up.
  3. There are many myths about credit scores, like thinking you only have one or that you must carry a balance to improve your score. In reality, it's better to pay off debt completely.

Follow-Up: Mortgages by Credit Score

Erdmann Housing Tracker • 105 implied HN points • 04 Dec 24
💰 Finance Mortgages Credit Scores Housing Market
  1. The average down payment for mortgages has stayed about the same since 1996, showing that lending standards haven’t changed as much as some people think.
  2. Home values and lending practices dramatically shifted between 2007 and 2009, leading to a decline in the quality of new mortgages, which affected the overall housing market.
  3. The decline in home values wasn't just a sudden crisis but a long-term issue influenced by lending practices and market perceptions, resulting in many areas experiencing just steady downturns without previous booms.

FHFA’s National Mortgage Database: Outstanding Mortgage Rates, LTV and Credit Scores

CalculatedRisk Newsletter • 57 implied HN points • 27 Dec 24
💰 Finance Mortgage Rates Real Estate Credit Scores Economic Trends Housing Market
  1. Current mortgage rates remain high, especially above 6%, making it hard for homeowners to sell and buy new homes. Most people with lower rates don't want to move because their payments would go up.
  2. More than half of all outstanding loans are now under 4%, showing how many people got favorable rates during the pandemic. This is a big reason why available homes for sale are currently low.
  3. Market sentiment is hesitant, with many potential buyers waiting for mortgage rates to drop into the 5% range before they consider purchasing a home.

Mortgages Outstanding by Credit Score

Erdmann Housing Tracker • 63 implied HN points • 03 Dec 24
💰 Finance Mortgages Credit Scores Homeownership Real Estate Economic Trends
  1. After 2008, the number of mortgages given to people with lower credit scores dropped significantly compared to those with higher scores. This changed the lending landscape quite a bit.
  2. High real estate prices are affecting mortgage access more than the other way around. Many lower credit score borrowers are struggling to get mortgages, leading to higher rents and home prices.
  3. The tightening of lending rules since 2008 has made it harder for many people to become homeowners, leading to a market where only certain buyers can take advantage of low interest rates and good prices.
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