How does your credit score affect your ability to purchase a home?
Good credit can be the make-or-break detail that determines whether you'll get a home mortgage,
low interest credit cards, a personal lines of credit or a job (lots of employers check the credit
of candidate applying for a position in their company). Good credit can signify your financial
situation. It can be an indication that your life is on the right path to success.
You can check your credit score by requesting a free credit report every year from each of the
three reporting bureaus: Equifax, Experian, and Trans Union. Your credit report is separate
from your credit score. In addition you also need to request your FICO from the three reporting
companies mentioned a previously. Your credit score is based on the information found on the
credit report. Some of the scoring factors are payment history, amounts owed, length of credit
history, types of credit used and they look at have you applied for new credit. FICO scores range
from 350 to 850.
You can repair your damaged credit but it takes time, a conscious effort and setting up a personal
debt repayment plan and stick to it. There are some credit repair services available through
some lending institutions. The counselors offer some of the most effective and efficient ways to
help you repair your credit.
Many young renters have not established a credit history, because landlords typically do not report rental
payments to the credit bureaus. There are a few services that will offer this information to the credit bureaus,
and it could make a difference on whether or not a young buyer can qualify for a mortgage. So be sure to
look into this, if you or someone you know is just moving out onto their own.
Today's blog was prepared in cooperation with Bernita McKinnion, real estate office manager, Home Land Seattle.
Happy investing!
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