Frequently Asked Questions

A good credit score is typically 670-739 (FICO). Scores of 740+ are considered excellent. Most lenders consider anything above 670 as acceptable for favorable loan terms.

Check your credit score at least once a month. You can get free weekly reports from AnnualCreditReport.com. Regular monitoring helps catch errors and identity theft early.

No. Checking your own credit is a "soft inquiry" and has no impact on your score. Only "hard inquiries" from lenders when you apply for credit can temporarily lower your score.

Most negative information stays for 7 years. Bankruptcies can remain for 7-10 years. Positive information can stay indefinitely, though closed accounts typically fall off after 10 years.

A common rule is 10-12 times your annual income. However, the right amount depends on your debts, dependents, future expenses (like college), and existing savings.

Term life covers you for a specific period (10-30 years) and is more affordable. Whole life covers you permanently and builds cash value, but costs 5-15x more.

Review annually and after major life events: marriage, having children, buying a home, changing jobs, or significant income changes.

At minimum, contribute enough to get your full employer match (free money). Ideally, aim for 10-15% of your income. The 2026 contribution limit is $23,500 ($31,000 if 50+).

Generally: 1) Get employer 401(k) match, 2) Pay off high-interest debt (8%+), 3) Build emergency fund, 4) Max out retirement accounts, 5) Pay off remaining debt.

Traditional IRA: Tax deduction now, pay taxes in retirement. Roth IRA: No deduction now, tax-free withdrawals in retirement. Roth is often better if you expect higher taxes later.

Most experts recommend spending no more than 28% of gross income on housing costs. Total debt payments should stay below 36% of income.

FHA loans: 580+ (3.5% down) or 500-579 (10% down). Conventional loans: 620+ minimum, but 740+ gets the best rates. Higher scores = lower interest rates.

30-year: Lower monthly payments, more flexibility. 15-year: Higher payments but less total interest and faster equity building. Choose based on your budget and goals.

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