Make Your Credit History Spotless

Pay the balance in full on time.  This is the easiest way to build credit and keep credit at a good score.  A perpetual process of payment will look good to lenders.  Look at the date and pay the amount specified.  If you cannot afford to pay it in full, understand that paying the minimum balance includes a low credit score and unnecessary interest rates.  Pay off as much maxed-out credit cards as possible.

Don’t close old accounts or add new ones.  Most of the time, closing an account means you’re done with it.  Everything attached to the account permanently vanishes. In credit history, closing accounts hurts your credit score.  The paper trail remains on your file for a maximum of seven years.  Opening a new account will lower the average credit age and credit score because it’s too new for the account to make an impact.  It’s best to open a new account after obtaining the home and mortgage.

A lengthy credit history looks good to creditors.  Lenders see a long stable credit history as someone they can trust.  Credit accounts that are too new have a harder chance of obtaining creditors’ trust.

The unemployed, bad credit or no credit recipients still have an option: paying more on the down payment.  It’s going to take a chunk of money to receive the trust of lenders, but it’s worth it.  They’ll have more money in their possession, and you’ll get the mortgage loan.  It also increases the chances of becoming a homeowner.

Credit scores mean the world to lenders.  Since rules and regulations force lenders to be tougher, prove to them you are responsible and dependent with credit history.  For more information on purchasing the home of your dreams, contact us.