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.

HERE’S HOW DEBT CONSOLIDATION CAN HELP YOU

HERE’S HOW DEBT CONSOLIDATION CAN HELP YOU

Falling into the trap of unmanageable debt is a very common situation nowadays. It is a proven fact that more than 45% of people in the US spend more than what they earn. Climbing out of the trap of debt … Continue reading

GETTING A MORTGAGE: 5 STEPS FOR EASE AND SUCCESS

MortgageWhether you are a potential home buyer, looking to find a home of your own, or an existing homeowner, who seeks better terms and/ or rate on your mortgage, it’s important to know a little more about the process of getting the best one, at the best terms. Since the vast majority of individuals use a mortgage loan to pay for their house, I felt it might be helpful to review some things to consider. With that in mind, this article will attempt to briefly examine and consider 5 steps you might wish to consider following, to ensure this often – tense, stressful process and period, becomes somewhat easier and more successful.

1. Check, and fully review, your Credit Report: Especially in today’s atmosphere and environment, where there is so much Identity Theft, it’s smart to begin, by doing this. First, review the report for accuracy, etc. Then, look at the items, and report, the way the lending institution might. Begin, by looking at your debt-to-income ratio. The desirable maximum for this changes, periodically, but if you keep it to about one-third (maximum), you’ll probably be somewhat safe. Prepare about 3 months, or more, before you begin the process, and pay – down, your debt. Do not wait to the last – minute to do so. If you can do this, a year or more before, it’s even better!

2. Repair: One of the primary reasons to begin Step One, as far in advance, as possible, is to give you the opportunity, to make any necessary repairs, and to enhance your credit rating, as much as possible. Be careful to avoid requesting or taking out any new credit during this period, because doing so, might harm or reduce your credit score!

3. Patiently wait after steps one and two: Optimally, waiting a year, will get you the best results, but you should always wait, at least 3 or more months, after you’ve made your repairs and/ or fixes.

4. Stay away from any credit offers, etc, during this period: That offer you get in a retail store, which will give you, immediately, an extra discount on your purchase, is not harmless, but, rather, might negatively impact your overall credit. Keep your eyes on the target!

5. Be prepared for the down payment: Most lenders will want to know where your down payment, and other funds, come from. At least 3 or more months in advance, place your probable down payment, in an account, you can clearly provide statements for, demonstrating your ownership.

A little bit of preparation and paying attention to some relevant details, will generally make the process go smoother and easier. If you really want and/ or need that mortgage, do all you can to be prepared!

An article written by Richard Brody. Brought to you by Ezinearticles, 

CARBON MONOXIDE DETECTORS/ALARMS ARE REQUIRED

RCW 19.27.530 requires that all Sellers of owner occupied properties in WA State must equip the home with a carbon monoxide (CO) detector before a Buyer may legally occupy the residence following the sale and all residential rental properties must also be equipped … Continue reading

WHY MORTGAGE PROTECTION INSURANCE IS IMPORTANT FOR A HOMEOWNER

WHY MORTGAGE PROTECTION INSURANCE IS IMPORTANT FOR A HOMEOWNER

Mortgage Protection Insurance can be a valuable resource for homeowners if an unexpected event prevents them from being able to pay their mortgage. Mortgage Insurance is a financial product that is different than some other insurance products because it is … Continue reading