There are a variety of factors that are involved in getting your mortgage approved. Few issues will have more of an impact than your FICO score and the credit history that goes along with it. Instead of leaving your score up to chance when submitting your application, here are a few ways that you can boost your financial well-being and leave your credit score better off than it was before. The term FICO score stands for the company that brought it into vogue – Fair Isaac Company. Most credit repair companies serve several purposes such as teaching how to repair and maintain good credit, and do it fast as in a “Rapid Re-score”. There are many factors that affect one’s FICO score that are frankly counter-intuitive, none the less, we have to play ball on their terms.
My Experience as a Chandler Realtor – What I Continue to Learn
Even with over 14 years as a Realtor, I learn something new about credit. It never ceases to amaze me how creditors change their credit scoring almost as frequent as Google changes it algorithm. As a Chandler Realtor I often see buyers go out and make large purchases while they are purchasing a home. This can often and does often preclude them from purchasing a home. If you are looking for Chandler homes for sale, don’t make any large purchases that will go on your credit cards or store credit. Here are a few other tips to help you build and maintain a high credit score.
Put More On Your Card (another counter-intuitive move…)
It’s important to put purchases on your credit card that you can afford to pay off consistently, but many people are not aware that how much debt you owe can actually positively contribute to your credit score. While it’s good to use up to 30% of your available debt load, a significantly higher percentage than this can be a signal to lenders that you are experiencing financial difficulties. By putting everyday items on credit, it will be easier to give your score an instant boost. Paying off your credit card every month doesn’t help your credit and closing cards that you aren’t using will actually damage your credit.
Clear Your Credit History
Many people who think they have bad credit are too afraid to even review it, but it’s very important to take a look at your credit history when it comes to taking control of your finances and your FICO score. If there happens to be incorrect information on your credit report, this will enable you to contact the appropriate lenders and dispute the charges so they can be corrected prior to your mortgage application. It may not seem significant, but this can actually have a marked impact on the outcome of your application.
Make Your Payments On Time
It’s often the case that those who are struggling with debt may push away the bills altogether and give up on the minimum payment, but it’s very important that the minimum is made to keep your financial health in check. It may take a few months to see the results of putting down this amount before the due date, but it will improve your credit over time and forge good habits for the future.
Your credit score is an important aspect of determining your financial health for lenders, and this means that your credit history is of significant importance when it comes to your mortgage. Instead of leaving it up to chance, ensure that you’re making the minimum payments and correct any discrepancies in your credit report. If you’re currently in the market for a home and are considering your options, contact one of our mortgage professionals for more information. View Chandler homes for sale on this site; the most unique and comprehensive home search tool which is map-driven. Or contact me and I will set you up so that the homes that meet your criteria are emailed to you the day they hit the market. I’m Greg Hagopian, and once you read my biography you will see what separates me from my contemporaries.