Credit,Scores,and,Your,Home,Lo finance, share, loan Credit Scores and Your Home Loan
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
Credit scores are a critical component for lenders trying to approve home loan borrowers. Multiple studies by the Federal Home Loan Mortgage Corporation (usually called Freddie Mac) have shown that credit scores are some of the best indicators for a borrowers long term performance. So, what exactly does your credit report show? The basic information in your report identifies you and is updated as you apply to various lenders. This information includes your name, date of birth, social security number, address, and job history. Your credit report also shows the lines of credit that youve previously established, such as car loans, home mortgages, and credit cards. Each line of credit shows the date that it was opened, what you currently owe, a history of payment, and how much youre allowed to borrow. These credit accounts basically show a likelihood of spreading yourself too thin financially. Although its good to have some of these items in your report (otherwise, you wouldnt have a credit history), it can actually hurt you to have too many accounts currently opened. So, if you have more than, say, three or four credit cards, it would be beneficial for you to close some of the accounts that you dont use. Credit counselors can help you determine ways to improve your credit and can give you advice about such strategies. A report also gives a history of everyone who has accessed it, including you. When you access your own credit report (which you should do periodically in order to check for errors), thats considered a voluntary inquiry. The report also shows involuntary inquiries, which is when lenders request your report for getting you approved. Lenders only order a copy of your credit report if you apply to them for a loan, and you have to give them authorization to do this. When you have five or more lender inquiries in a year or so, this can raise red flags for lenders. Having too many inquiries suggests that you may be requesting a lot of money that you dont have maybe youve maxed out credit cards, or youve recently bought a lot of items that you cant really afford. So, keep this history in mind when you apply for loans. The last information on credit reports shows whether you have overdue items such as foreclosures, bankruptcies, property liens, or legal suits. This kind of kind of information goes on public records due to collection agencies, and it can major damage to a borrowers ability to get approved for future loans. In fact, this fourth section can cause the most harm on the entire credit report for borrowers. If you have questions about your credit report or questions about how to improve your credit report be sure to talk with a credit counselor. If youre considering buying a home, the earlier you start on building your credit report, the better your chances will be of getting the home loan you need.
Credit,Scores,and,Your,Home,Lo