Repairing Your Credit

Do you realize how important your credit score is, all the time?

Who looks at your credit score? Everyone!

• Insurance companies. If you’re a high risk based on your credit score, you’re a high risk for insurance companies and they’ll charge you a higher rate.

• Employers. What’s the risk if they hire you?

• Landlords. If you apply for a rental property, what risk do landlords take with you? Want to know what a landlord will see about you? Check out SimpleScreening.

• Mortgage Companies. If you apply for a home mortgage, credit score not only affects whether or not you get a home loan, but what interest rate you will pay if you do. A credit score plays a large role in a lender’s decision to extend credit and under what terms. For example, borrowers with a credit score under 600 will be unable to receive a prime mortgage.

• Credit Card Companies. They check your credit score to determine, not only if you get a credit card, but what interest rate you pay if you do.

The higher your credit score, the less you will pay for all the above.

Repairing Your Credit and Keeping it There:

Pay all bills on time! Not just your monthly lease payment (but pay that first!), but everything; credit cards, car payments, utilities, everything. Lenders may require bank statements and run various background checks and credit checks to determine your ability to repay the loan, perform your job, pay your rent. Make sure everything they see is good!

Don’t buy anything new! I mean large purchases; jewelry, vacations, flat screen tv’s! Large ticket items like a car can lower your credit score substantially. They significantly change your debt to income ratio. That means that what you owe becomes too close to what you earn and lenders will see that you can’t afford to take on more debt. Keep your debt down and your available credit high.

Don’t change jobs! Most people looking at your credit history want to see stable employment. The exception may be if you get a better job in the same profession with a salary increase.

Buying a home? Mortgage lenders will do a final check on you the day before or the day of your closing to make sure nothing has changed on your credit report. Once you’re approved for your loan, make sure nothing on your credit report changes!

Check your credit score. See if there are any incorrect items listed. If so, write to the credit bureau to have them removed. Find a good credit repair person to learn what things you should do to most improve your score. Your bank or lender can give you the name of someone reputable.

Everyone looks at your credit score. Your credit score matters, maybe more than you knew. Know your score and take care of it!

Call me now to help you start the home-buying process on the right foot. 717 514-1793 or email me at Ken@KensHomesales.com