Clustrmaps

Locations of visitors to this page

Posts Tagged ‘credit rating’

Check Your Credit Score Before Asking for a Loan

Friday, June 26, 2009
posted by Chris Gmyr

Check your credit reportYour credit score can have a drastic effect on your ability to get a good rate on a mortgage. Most people realize this.

What you might not know is how important it is to know your credit score before even approaching a bank for a loan. Knowing your credit score before you start trying to buy a home is essential. For one, it takes away the chance of a nasty surprise when you get to the bank and find out that your credit is not as good as you thought. On the other hand, if you have really great credit, it is good to know that going in, as well. It gives you an edge in the process if you know your credit score; you can request the best terms possible for your loan, and you will very likely get them.

Knowing your credit score also makes it easier for you to shop around for the best rates. This is especially true if you have poor credit.  Many lenders have an online estimate service for mortgages and other loans. Use these tools and compare the results. Cross any lenders off your list of potentials if they only offer consistently high rates. By knowing your credit score, you can narrow down the number of banks you need to visit without having to leave your home or even pick up the phone.

How much of a difference does your credit score make? Well, your credit score determines the interest rate for your loan, amongst other things. A credit score of 650, which is about average in the US, and 720, which is considered to be great credit, can make as much of a 1.5% difference in the interest. For a home that sold for $200,000, that is worth a couple hundred dollars a month in payments, or two to three thousand dollars a year.

The best time to check your credit before buying a home is not right before you start applying for loans; you should check as far in advance as possible, especially if you know that your credit score is low. It can take several years to rebuild credit. Checking your credit earlier means that you have more time to pay off any old debts and work on improving your credit rating before you start shopping for a loan.

Checking your credit is easy, and you can get all three credit reports free once a year. Be sure to check the reports over for any inaccurate entries, as they may be a sign of identity theft, and then begin paying down debts. Getting your credit score in the best shape as is possible, before approaching a bank for a mortgage, can save you thousands of dollars; isn’t that worth the time to check it early?

Are you ready to take the first step towards getting a mortgage for a new home? These are the three credit bureaus that lenders check. Follow the links to check your scores:

Equifax

Experian

TransUnion

Number of Views :163
Tags: , , , ,
comments (4)

How to Fix Your Credit Rating

Thursday, June 18, 2009
posted by Chris Gmyr

When you start thinking about buying a home, you may think about loans, mortgage rates and all the other financial concerns that go into buying a home. One of those things may be your credit rating. If it is not very good, it may be harder for you and your family to go about purchasing a home. Here are some tips to help you get started on your way to fixing that rating and owning a home.

Know your credit rating
The first step in fixing your credit rating is to know what it is and exactly what that means. There are some websites that let you look up your credit rating free of charge and may even help you figure out exactly what it means. If this is not helpful, you may try family and friends or a financial advisor at your bank for help. Once you understand what it is and what it means you are on your way to fixing it.

Try to pay down mortgages, loans and other financial debts
It is a good idea to look at all of your loans and start paying off the ones you can first and work with your bank and other financial institutions to make a plan to pay down the rest. This will help you pay off your debts and help fix that credit rating.

Keep track of your credit cards and each of their limits
It is helpful for your credit, if you know how many credit cards you have and the limits on each of those cards. It is also a good idea to keep track of when payments are due and any interest or other rates you may be charged for late payments. Finally, it is a good to pay off the credit cards that are due first or you may not have had the longest, because they do not know you as well and may not know you will in fact pay them when you can.

Use your credit cards as little as possible
It is important that you use your cards as little as possible especially the ones with a low limit or the ones you already have a good amount of money on.  This way it will be easier to make payments and to improve your credit rating.

Establish goodwill or good faith with your credit companies
If you make plans with your creditors about when you are going to pay them and then you make those payments, this will help you to establish goodwill, so that when one or two payments are late, the company knows you will pay them and may let the first late payments slide.

Having good credit is important especially these days. It helps you to buy the things you want and need, like that new home. If you follow these tips to improve your credit rating, it will help you to be on your way to enjoying that new home faster and for a long time.

Number of Views :83
Tags: , , , , ,
comments (0)
Chris Gmyr is proudly powered by WordPress
Entries (RSS) and Comments (RSS).