Credit
Score Vigilance Rewards Future Arnold, MO Homeowners
Your credit score will have a major impact when it comes to
the cost you wind up paying for an Arnold, MO
mortgage. A buyer with a high credit score of 750 or above will qualify for the
most competitive interest rates available; but today’s tightened lending
standards mean that some borrowers with scores under 600 may not qualify for a
mortgage at all. And no matter what, a low credit score can mean paying an
extra 3%-4% interest charge on every payment.
There is nothing permanent about a credit score. Arnold, MO home buyers who realize its importance—and
who take early steps to improve their own—can save literally thousands of
dollars.
1. You
can’t improve your credit score until you know what you are working with. Your
first step is to obtain your credit
reports. They are available for free once a year from each of the three
major reporting agencies: Equifax, Experian and TransUnion.
2. The
fastest way to improve your credit score is to correct any inaccuracies.
Because this takes time – anywhere from 30 days to as long as six months, the
earlier you begin the process, the better. To remove items that are incomplete
or inaccurate, verify the correct information using the dispute procedure on
the agency’s website. The creditor has 30 days in which to validate the debt;
if the credit agency does not receive a response to your claim, they are required
by law to remove the entry from your report. Remember that there are three
major agencies, so an incorrect item may appear on all three— and all three
need to be contacted.
3. If
you have an older credit card that you haven’t been using for a while, it’s a good
idea not to cancel it; even to use it now and again, paying the balance in full.
This will mean that the issuer keeps reporting information to the credit bureau,
which can be valuable. A longer credit history improves your credit score.
4. A
low credit utilization ratio measures
how much of your available credit you are using. In order to improve your
credit score, keep your credit utilization ratio below 20%. One way to quickly
improve a utilization score is to move credit card debt onto cards with higher
limits. While this will not make a difference to the amount that you owe, it
will alter individual cards’ credit utilization ratios.
5. Consider
a Personal Loan. If you have a family member or friend that you can
borrow from, consider taking out a loan in order to pay down a portion of
existing debt. By removing some of that debt, you can give your credit score a
boost.
6. Moving
away from being measured as a poor credit risk has the biggest impact on
whether a future mortgage is approved—and how much interest you wind up having
to pay. Your credit score in Arnold, MO really
matters! If you would like an introduction to a mortgage broker to begin the
conversation about the home loan your current credit score qualifies you for, visit HOMEOFSTLcom
The Helderle Team 2014 © All Rights Reserved
