Impact of Credit Score to Buy a House in 2019

Credit score plays an important role while taking a loan for your new home. Poor credit score can stop you from getting approval for new credits and credit products. Even if you are still able to avail an auto loan or a mortgage, you have to pay a much higher interest rate due to your low credit score. Compared to a person with a good credit score, the one with poor credit will pay more in interest on a mortgage. Over the entire period, you could end up paying more unnecessary interest just because of the bad credit score. Here are some steps towards building a better Credit Score, so you buy your dream home.

 

realtors in kernersville nc

 

  •  Analyse where you stand

Before going to take a new credit, figure out where you stand with realtors in Kernersville NC. Credit scores range from 300 to 850 and a score between 700 and 740, depends upon the method used there, is considered as good credit score. It is usually sufficient for you to qualify for the lowest mortgage rates and best credit cards. Try making a credit report for yourself from Experian, TransUnion, and Equifax.

 

  • If You Find errors, correct them.

Errors in credit reports are not very common, but they can happen. Sometimes bad credit score can be just your fault. At that point, you should not argue for definite information, but if you see errors even small ones, they should be cleaned up. You can write a letter that shows the falsehood to the specific credit reporting agency, whether Experian, Equifax, or TransUnion. The reporting agency has 30 days after receiving your letter to respond.

 

  • Stop Spending Unnecessary

After you are done dealing with any errors in your credit report, you need to make sure that you are not spending more than you are earning every month. You can do this by paying all of your bills on time, pay your own debt (especially credit card debt) and avoid applying for any other credit. Also, measure your monthly spending habits such as gas, groceries, or entertainment. Do maintain a limit based on your monthly income, of what you can spend.

 

  • Pay Bills on Time

If you want to maintain a good credit score, you have to pay all your bills on time. You Should know that your credit score will not improve until you start consistently paying every bill on time.

 

  • Avoid Applying for New Credit

Last but not least, resist the attractiveness of a new credit card, even if the store is offering a huge discount on your purchase for doing so. Every time you apply for new credit, it is listed in your credit report as a hard inquiry, and if you have too many credits within two years, your credit score will ultimately go down.

 

Start today by maintaining your credit reports to get an idea of where you stand. If you find any errors, try solving them with the help of Winston Salem Realtors. In the meantime, avoid applying for new credit. In order to improve your credit score, you will have to limit the use of your credit.

It can take a few months or even a few years in improving your credit score, but if you are planning to buy a new house, it’s all worth it.