SAVE MONEY WITH THESE SEVEN HOME IMPROVEMENTS

SAVE MONEY WITH THESE SEVEN HOME IMPROVEMENTS

Everybody wants their home to be in the best condition as you will want to live a comfortable life. You will always have a long list of renovations in your mind. Upgrading the house can be a little expensive, and … Continue reading

THIS IS HOW FAR ONE HUNDRED DOLLARS WILL GO IN EACH STATE

THIS IS HOW FAR ONE HUNDRED DOLLARS WILL GO IN EACH STATE

How much is $100 worth to you? If you’re 8 years old and get $10 from your grandma on your birthday, $100 dollars would probably seem like winning the lottery. On the other hand, if you have three kids, $100 … Continue reading

MAJOR KINDS OF MORTGAGE LOANS

MAJOR KINDS OF MORTGAGE LOANS

To buy a house is probably one of the largest and most complex financial expenditure that a person can make. Because it requires huge amount of money, most buyers do not own enough amount to fully pay for the house … Continue reading

DIFFERENT TYPES OF MORTGAGE, FIXED AND ADJUSTABLE RATE

DIFFERENT TYPES OF MORTGAGE, FIXED AND ADJUSTABLE RATE

The fixed rate mortgage: Fixed rate mortgage is among the commonly used type of mortgage. Many prefer this because the interest rate is predetermined and it remains the same throughout the life of the mortgage. This makes it predictable. Thus, … Continue reading

TEST YOUR CREDIT SCORE KNOWLEDGE

What is a credit score?

All credit active people have a profile. This is a summary of your history with every credit provider you’ve ever dealt with, and serves as a record of how well you’ve managed your accounts like loan repayments, overdue debts, how often you’ve asked for credit and the kinds of loans or credit you’ve applied for, and the frequency of your applications.

How it works?

Credit reporting providers summarize your profile into something called a credit score. The score is between 300 to 850, where the higher the number, the more likely you are to be able to repay a loan. Lenders look at your credit profile and score to find out about your credit history and behavior, and assess if you are able to take on a new loan. This information reassures lenders that you’re good at paying money back to those you’ve borrowed from.

A good score not only makes you more likely to get approval on your home loan application – but it also means you’ll qualify for a better interest rate. Of course, the other side of the coin is that if you have a poor score, you will be less likely to qualify for any new loans. This protects the lender and those with low scores from taking out additional loans and overextending themselves and getting into more debt. In short, you’ll need to have a good credit score rating for your home loan application to be approved.

It’s therefore a good idea to first find out what your credit score is before applying for a loan, and to give yourself time to improve it before approaching a lender.

How to improve your score?

Improving your credit score starts with looking at your current financial situation and ways to improve it. Getting into a good credit position before you apply for a loan can help increase the likelihood of you getting approved.

You can improve your score by:

  • lowering your credit card limits
  • consolidating multiple personal loans and/or credit cards
  • limiting your credit enquiries
  • paying your rent and bills on time
  • paying your mortgage and other loans on time
  • paying your credit card off in full each month

To avoid any surprises, be prepared and know your credit score.

Written by Lisa S. Brought to you by EzineArticles.