Your Credit Score


When it comes to buying a home, credit history becomes especially important. When deciding how much to lend out Banks focus heavily on 3 things: Your Credit History, Your Income/Expenses, and your Down Payment amount. Whether you have great credit or bad credit there is always room for improvement with just a few simple steps. Having bad credit doesn’t necessarily mean you cannot buy however having good credit makes the buying process much simpler.




Your Credit Worthiness

Your Credit Worthiness depends on a few factors as quoted by Equifax and Transunion:

Pay all your bills on time: If you cant pay in full, pay at least the minimum amount due

Watch your Credit card balances: Don’t utilize too much of your available credit. The ideal is to not utilize more than 50% of your credit limit at a time

Don’t mindlessly open new credit accounts: Having many credit checks and new applications for more credit doesn’t reflect positively on your overall credit history in the eyes of creditors

Inform creditors when you move: Having your address up to date eliminates the hassle of you missing payments due to not receiving your bills at the right address

Online Accounts: Check your accounts online and make sure that your payments are inline

Pay off overdue bills: If you have some accounts that are late bring them up to date as soon as possible because once they are paid in full your credit immediately starts repairing

Look for inaccuracies: Sometimes information reported to the credit reporting agencies isn’t quite right or is incomplete. The credit reporting agencies make it easy for you to dispute these inaccuracies. And remember, credit bureaus are just the messengers, it’s up to you to let them know of any reported inaccurate information