Watch out for these Credit Score Killers!
Some people don't start thinking about their credit until they need it, taking it for granted. This presents a risk that a loan application or purchase may be outright denied at the moment you need it most. Here are a few key things to keep in mind about your credit score.
1. Check your credit report.
Not making corrections to entries on your credit report can become a frequent problem. While most credit reports contain inaccuracies, not all errors are serious. Reviewing your free credit reports from Experian, TransUnion, or Equifax once a year at www.AnnualCreditReport.com is a good idea because it takes time to get them removed.
2. Pay your fees on time.
Payment tardiness is also a significant issue. One 30-day late payment can be enough to make the borrower pay a higher interest rate or even deny the loan. All payments will always have a due date. Even if they allow you an extension, that will reflect on your credit. If it is not on time, it is late.
3. Avoid maxing out.
As the percentage of available credit decreases, your credit score will decrease. Not only can bad credit prevent you from getting the loan you want, but it can also increase the interest rates on the insurance you buy. Your idealized outstanding balance should be no more than 30% of the available credit.
According to a study published by the Consumers Association of America, people with good credit end up paying less than people with average and bad credit. Their results show that some customers with bad credit were charged about twice as much as customers with excellent scores.
It's a smart idea if you're considering moving to a bigger house to get approved by a reputable mortgage professional before selling your current home. Sometimes, after selling a home, sellers find they can't get a new mortgage. Be sure to research properly, and work with a professional that’s a good fit for your needs.
Authored by:
Mario Gonzalez
Navy to Navy Homes
4540 Southside Blvd., Ste 702
Jacksonville, FL 32216
904-900-4766
