Understanding your credit score for home financing
Mortgage lending relies heavily on credit scores for home financing so it is particularly important to understand credit scoring
. A credit report is the single quickest way for banks, creditors and even employers to learn about your financial behaviors.
Credit scores are trackedby three companies: Experian, Equifaxand TransUnion, and scores are determined by a variety of factors. Your credit is assigneda score, ranging from 350-850, which offers a baseline estimate of a consumer's willingness and ability to repay a debt based on previous history. To receive the best loan terms possible, aim for a credit score of 740 or better.
Consider these five easy steps to managing your credit:
Less is more: Don't apply for store credit just to get the 10% off. Frequent credit inquiries and numerous revolving lines of credit (credit cards) will lower your score.
Know thyself: Pull a copy of your report at least annually for free from annualcreditreport.comto check for inaccuracies and address them as soon as possible to minimize their impact on your score.
Pay your bills on time: Pay the full amount due on secured loans each month. If you can't pay the full amount due on secured loans, request to make an interest-only payment until you can make the full payment.
Play the percentages: Credit card balances below 50 percent of the credit line is good, but 30 percent is better.
Protect your identity:Keep your good credit score intact by shredding all unnecessaryfinancial information. Protect online accounts with challenging passwords and be cautious when giving out your SSN as an identifier (for example on medical billing).
Want a great credit score for your home financing? Put these guidelines into play and you'll enjoy all the financial benefits. If you want to know the best mortgage for your needs and credit history, contact Rebecca at http://rebeccamadej.com today.
Understanding your credit score for home financing