The significance and relevance of your credit history is paramount at the time of availing a home loan.
Working towards improving your credit score is a continuous exercise but you must pay attention to a few important aspects regarding this score as soon as you have decided to look out for a home the payment for which would be made by funds borrowed from a lending institute by mortgaging your home.
There are a host of factors which constitute your credit appraisal process.
The credit appraisal process refers to a check of your credit history and the ability to repay your housing loan based on your financial health.
While your repaying capacity is largely related to your current earnings, this score determines your credit track record.
A good credit history as reflected in your credit score bears a testimony to the fact that you have made timely payments to any type of credit availed in your name.
A healthy credit score helps you in the following ways when you file an application for a home loan oHelps in speedy processing of your loan as certain checks are only related to people with average or below average credit score: oThe amount of loan that the lending institute is ready to lend you increases in case you have a healthy credit score.
oA healthy score can help you get a pre-approval for a loan.
It could be related to servicing of your credit card payments or any type of loan availed in the past.
Make sure you start working on your credit score the moment you decide to look out for a house.
Avoid making high value purchases which would force you to make part payments towards your credit card outstanding.
This feature available on credit cards is called as revolving your credit.
Not only have you made higher interest payments towards your credit card purchases, it also has a negative impact on your credit history.
It is best to avoid revolving your credit as the time to approach the lending institute draws near.
It is important to review and study your credit score statement provided free of cost by the three credit rating agencies in the United States.
You must ensure that all the facts and figures disclosed in the statement are true.
In case of discrepancies, make sure you take up the issue with the credit rating agency and get the discrepancy removed.
If there are any negative blots or disputed amounts on your credit history, it is best advised to resolve this with the card issuer or the agency which is behind this blot on your credit score.
You would do your score a lot of good by prepaying any loan amounts.
This indicates your financial stability and it also increases your borrowing limit.
Undoubtedly, your credit score is the one big factor that can make or break your dream of owning a house.
Start working on a healthy score from today.
Working towards improving your credit score is a continuous exercise but you must pay attention to a few important aspects regarding this score as soon as you have decided to look out for a home the payment for which would be made by funds borrowed from a lending institute by mortgaging your home.
There are a host of factors which constitute your credit appraisal process.
The credit appraisal process refers to a check of your credit history and the ability to repay your housing loan based on your financial health.
While your repaying capacity is largely related to your current earnings, this score determines your credit track record.
A good credit history as reflected in your credit score bears a testimony to the fact that you have made timely payments to any type of credit availed in your name.
A healthy credit score helps you in the following ways when you file an application for a home loan oHelps in speedy processing of your loan as certain checks are only related to people with average or below average credit score: oThe amount of loan that the lending institute is ready to lend you increases in case you have a healthy credit score.
oA healthy score can help you get a pre-approval for a loan.
It could be related to servicing of your credit card payments or any type of loan availed in the past.
Make sure you start working on your credit score the moment you decide to look out for a house.
Avoid making high value purchases which would force you to make part payments towards your credit card outstanding.
This feature available on credit cards is called as revolving your credit.
Not only have you made higher interest payments towards your credit card purchases, it also has a negative impact on your credit history.
It is best to avoid revolving your credit as the time to approach the lending institute draws near.
It is important to review and study your credit score statement provided free of cost by the three credit rating agencies in the United States.
You must ensure that all the facts and figures disclosed in the statement are true.
In case of discrepancies, make sure you take up the issue with the credit rating agency and get the discrepancy removed.
If there are any negative blots or disputed amounts on your credit history, it is best advised to resolve this with the card issuer or the agency which is behind this blot on your credit score.
You would do your score a lot of good by prepaying any loan amounts.
This indicates your financial stability and it also increases your borrowing limit.
Undoubtedly, your credit score is the one big factor that can make or break your dream of owning a house.
Start working on a healthy score from today.