7 Tips For Establishing Qualifying Credit For Home Equity Mortgage Loans



7 Tips for Establishing Qualifying Credit for Home Equity & Mortgage Loans
According to​ Experian,​ a​ credit score is​ a​ number lenders use to​ help them decide: If I​ give this person a​ loan or​ credit card,​ how likely is​ it​ I​ will get paid back on​ time? the​ information from your credit reports is​ used to​ create your credit score .​
Your credit score will always be a​ key ingredient for low interest rates when qualifying for a​ mortgage or​ home equity loan .​

Before getting a​ line of​ credit,​ get your free credit report from each of​ the​ three major credit reporting agencies (CRAs): Experian,​ Equifax,​ TransUnion .​
Under federal law,​ you​ are entitled to​ one every year .​
Order online at​ annualcreditreport.com,​ or​ call 1-877-322-8228 .​
Check to​ make sure someone else's information isn't mixed into your report .​
If so,​ contact the​ CRA immediately and have them delete it .​
Then,​ follow these tips to​ help you​ establish credit and build your credit score:
1. Establish checking and savings accounts and maintain them responsibly.
2. Piggyback on​ someone else's good credit by being added to​ a​ credit card as​ an​ authorized (joint) user.
3. Get someone to​ co-sign a​ loan for you​ (e.g.,​ financing a​ car,​ or​ other secured loan) and make your payments on​ time.
3. Apply for student loans and make your payments on​ time.
4. Apply for a​ credit card or​ a​ secured card .​
But,​ make sure the​ issuer reports to​ all three CRAs .​
Otherwise,​ the​ card won't help you​ build your credit.
6. Apply for one gas card and one department store card to​ add to​ your credit mix.
7. Use your credit cards regularly,​ but wisely .​
Make all payments on​ time because the​ two most important factors in​ your score are whether you​ pay your bills on​ time and how much of​ you​ available credit you​ actually use.
Establishing and maintaining good credit will make buying a​ home a​ lot easier for you​ .​
You'd be able to​ get a​ good fixed rate loan instead of​ having to​ settle for a​ variable rate sub prime loan .​
It will also help for times you​ may need a​ home equity line of​ credit for home improvements or​ a​ home equity loan for debt consolidation,​ including paying off student loans.





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