Credit score is very important to get a mortgage loan or any types of loans and lenders will check your credit score before approving you for a loan. So you should have a better credit score to get approve a mortgage loan with better rates and affordable terms. If your credit score is more than 720 then it will be considered as a good credit score and it will help you to get the rates and terms that you want.
If you have credit score between 600 to 680 then it will be considered as a so so good and you may be able to get approve for mortgage loans but rates and terms will not be very favorable.
If your credit score is below 600 then it is not in a very good condition and the lender may be interested to approve for a loan. Even if any lender approves you for a loan then he will charge a higher interest rate. So to have a good credit score is really important.
How to maintain a credit score?
We know that maintaining a good credit score is very important but how to maintain the good credit score. With a few simple steps you can maintain your credit score in a good condition. Please follow the points mentioned below.
- Try to pay your monthly mortgage payments or all the other bills on time.
- Do not close your old bank accounts or old credit cards. That will really help.
- If you have any wrong information on your credit report, try to correct it as soon as possible.
- Do not check your credit score too often. This can drop your credit score.
These points will certainly help you to gain a good credit score. But you should keep it in mind that your credit will not improve within a day. IT will take time. So be patient and your credit score bound to improve. It’s no magic… all Logic.
What should you do to boost up your Credit Score & Personal Finance
Your credit score as well as your personal finance are interrelated. It is highly important for you to strike a balance between the two. If you are trying to figure out how you are going to do that then please take a close look.
It is very important for you to keep your credit scores below 620. So keep that in mind very specifically. Give your level best that you can keep the score as low as possible. It is in fact better for you.
At the same time it is of great importance to you that you do not indulge in big purchases. With a troublesome credit score you should not be in for a big purchase like a car or a house. In the first place you need to settle your credit scores and then you can or you should go for everything else. Always make it a point to keep the score as low as 3.9% or at best 5.5%.
If you are troubled in this particular issue then you need to make it sure that you are going to take the counsel of an astute professional in this regard. A seasoned professional can help you fix your FICCO scores. At the same time you need to be levelheaded in your expenses. You need to spend smart. This is how you are going to save smart.
You need to take good care of the payment history. Whenever it comes to payment you need to do it right on time. At the same time you need to maintain a good rapport with your collection agency.
We sincerely hope that the ideas shared in the post are going to be useful in your situations. If you would like to cash in on them then please make it sure that you are going to follow them religiously.
Why You Get Credit Score?
This new age is the time of credit cards and loans. People are dreaming to buy many luxury items for their better happy life where they are unable to buy them with their monthly income or savings. The credit cards and the many types of personal loans will help them to buy such basic and luxury demands.
In this financial market every financial deal are made under assurance of return on investment. The lenders are also finding some precautions before approving the application for getting such credit cards and loans.
The credit score is the evaluation of the borrower’s strength of carrying credit load and creditworthiness. There are major three credit rating companies who evaluate the credit score of the all borrowers and provide the data of those borrowers to the lending companies to help them to approve the loan to the right person who is with good credit score.
The credit score is not only the helping hand of the lenders but also it help to the employers to select a good honest and creditworthy employee for his concern.
This credit score is so important of the person who apply for a mortgage loan because the interest rate of the mortgage loan will decided according to the borrower‘s credit score. If the credit score is above 760 you can get good affordable rate of interest or it is lower than the 760 score you may suffer to get good rate of interest on your mortgage loan.