Your credit score defines you financially. Establishing and maintaining good credit will make your life infinitely easier. To establish a good credit score you must make your payments on time and in full every month. You can also improve your credit score by minimizing your debt. Learn more here about your credit score and what it means for you.
Credit History And Credit Score Impact Loans, Credit Cards, And Interest
Your credit history and credit score greatly impacts what kinds of loans, credit cards and interest rates you are offered. Only a good credit history and credit score will get you the best rates as far as loans, interest and credit cards go. Lenders check your credit history and credit scores and will only offer the best interest rates for loans and credit cards to those with the best credit history and score.
Credit Scores Rule The World– Almost
A credit score is like a personal financial SAT. Your credit history is pulled and each detail on the report is assigned a number. The mathematical computation is fairly detailed: Not only does each credit card you own receive a number, but that number is based on the current balance, how timely you make your payments, if you have ever missed a payment, and how much unused total credit you have available at any given moment. Fair, Isaacs decided that they would set up an online service that would allow consumers to view their credit score, and find out what factors were considered in creating the credit score.
World Of B-C Mortgage Lenders
Who is a B or a C borrower? They're primarily good people who have a bad credit problem, according to a lender. You might be a B-C borrower if you've had a bankruptcy any time within the past 7 to 10 years, or if you've had medical bill problems, or other situations where your credit score is so low you can't get a mortgage through the regular channel, if you own too many pieces of investment property, need a "no-document" loan because you don't wish to disclose all of your income, you've been self-employed for too short a period of time, or you're purchasing a unique piece of property that doesn't fit into the secondary lending market's A-borrower mold.
Dangers Of Co-Signing A Loan
While low interest rates certainly help more people to qualify for a home loan, interest rates won't always be low. By "co-signing" a loan, you are sharing someone else's buying power. This strategy can be used to buy a home, rent an apartment, buy a car, or get a credit card. However, what most folks don't realize is that co-signing a loan makes them entirely responsible for paying off the debt, should the landlord, credit card company, or mortgage lender not be paid.
Good Credit Score Helps You Get Better Mortgage Loan
Having a good credit score is crucial to getting a good interest rate on a car loan, a home mortgage loan or other loan. Whenever you apply for a loan, the creditor will check your credit report. Having too many creditors check your credit report or score within a month may result in your credit score dropping. When you're shopping for mortgage loan financing credit bureaus will give you 30 days to have unlimited checks of your credit.