Refinance Part 3

In applying for our mortgage refinance it is always eye opening to take a look at one's credit report and score.

My credit score was 799.  A score of above 760 is considered excellent and normally the best rates are provided to individuals with a score of 760 and above.  Of course I wondered why my credit score wasn't in the range of  800-850.  Talking with the mortgage broker he mentioned the fact that I don't have very much credit available to me since I only have one credit card with Chase which has a limit of $8000.  My score would actually improve if I had additional regular credit cards (of course it would go down if I applied for new credit right now).

Mr. Sam had a range of credit scores from 706-720s.  A score of 700 -759 is still considered great, but what was holding him back from joining the elite with me.  First, he has a medical bill collection for $160.  To me it is crazy that a tiny medical bill can ding the score like that, but that is the way it works, because it is counted as a collection regardless of the amount.  Second, Mr. Sam has no regular credit cards, he does have a Home Depot credit card, but store cards don't count the same way as a regular credit card.