IMPROVE YOUR CREDIT SCORE, Wilmington NC Real Estate NC
Your credit score is one of the most important factors used to decide whether you will qualify for a major loan and what its terms will be. Every day, many would-be-borrowers are denied loans, while consumers with strong credit histories are getting great rates on mortgages, car loans, and student’s loans. Understanding how your credit score is formulated is your first step when applying for a loan.
Take advantage of the rules.
Too many credit applications can lower your score. Multiple inquiries signal that you are having trouble successfully securing a loan and may be a credit risk or undesirable borrower. However, multiple inquiries from the same type of lender such as a mortgage company are counted as single inquiry if submitted over a short period of time.
Reduce your debt.
Creditors look for an optimal total debt load of around 36 percent of your house-hold income. If you monthly mortgage, car loan, and revolving credit card payments total more than 36 percent of your monthly salary, you will likely need to find a way to lower your overall dept before applying for a new loan.
Pay on time.
The easiest way to raise an ailing credit score is to make all your loan payments on time every month. Over the span of several months, you will likely need to find a way to lower your overall debt before applying for a new loan.
Timing is everything.
Wait 12 months following a credit problem before applying for a mortgage or a car loan. You will be penalized less for problems that are more than a year old.
Get your finances in order.
Avoid credit card purchases prior to applying for a major loan, and stay away from independent finance companies with high interest rates, which reflect poor credit management. Transferring dept from one card to another is another way to reduce your credit score. Of course, paying off credit cards every month is ideal. But that is not possible, steadily pay down the debt.
Posted by: Nilesh Jethwa Wilmington and Leland, NC Real Estate
Nilesh Jethwa is a local real estate agent in the Wilmington and Leland area. If you are considering
purchasing a home in the near future. Please contact me for a free consultation. Making
your home buying process has seamless as possible. To contact Nilesh Jethwa please click here!