Posts Tagged credit rating
10 Ways to Keep your Credit Rating AAA
Posted by Top Home Loans in Credit Information on September 3, 2010
Everyone wants to generate the best credit rating possible. They want to be able to do this with as little effort as possible. It is very easy to have a great credit rating. It just takes a bit of work, and you can have an amazing credit rating. Below are 10 ways to perfect your credit score.
1. Never miss a payment. Avoid missing payments on your credit cards, PLCs, loans, mortgages, etc. Don’t do it ever.
2. Never max out your credit or carry large balances on your credit products.
3. Never close credit accounts. By closing old accounts this causes your account life to be shortened.
4. Never co-sign on anything. Co-signing sounds like a nice thing to do, but it can destroy your credit rating.
5. Never declare bankruptcy or get a consumer proposal.
6. Never spend more than you make. This is a recipe for disaster if you do this.
7. Never pay credit with credit. The banks will never find out, but this is a really bad habit to start.
8. Never buy what you can’t afford. Instead of buying what you want, buy only what you can afford.
9. Don’t sign up for a credit card only for a ‘reward’. Make sure you pick and choose your credit cards carefully.
10. Never date someone with bad credit. Credit is a key indicator on someones life skills. If the person has bad credit, then everything else in that person’s life will be suffering as well.
Keep your credit AAA by following these simple rules for your credit rating.
What rules do you follow with your credit? How do you keep your credit high? Leave your response in the comments below.
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How does your Credit Rating Effect your Mortgage?
Posted by Top Home Loans in Credit Information, Mortgage Advice on September 3, 2010
If your a good credit user, then you should have a rough estimate of what your credit score is. For many, they do not know what their credit score is; however, it is critical that you know what yours is because it can make many differences on your mortgage.
All banks have credit requirements. If you are under a certain requirement on your credit report, then the bank will not even consider you. The bank will just automatically decline your mortgage with no questions asked. Banks with the best rate will require a higher threshold for the client’s credit bureau rating. If you have a bad credit score, then you can usually still get approved for a mortgage, but you will have to pay a premium on your interest rate.
Credit Scores can Impact Programs you Qualify for
For many borrowers, they want to be approved for their mortgage while providing as little documentation that is required. It is a hassle to look for old income documents that you may no longer have, so it is easier not to have to collect these documents. If you have a higher credit score, then the bank can sometimes waive this condition; however, if your credit score is very bad, then you will need to collect your income documents everytime that you apply for a mortgage. It is best to keep your credit in good standing to avoid extra work.
Getting Approved, and being Declined
Credit scores have the greatest impact on whether you will be approved or declined for your mortgage. If your credit score is too low, then you won’t be able to get approved anywhere. The higher your credit score, the more doors you will have open and available to get your mortgage approved.
Special Programs, What are they?
Many mortgage insurers have special programs that you may want to take advantage of. These programs can range from renovating your property to getting discounts on your mortgage insurance premium. You want to be able to get access to as many programs as possible, so make sure that your credit rating is very strong.
A strong credit rating is essential to getting a mortgage approved. It is also essential to getting the best mortgage rates. Make sure that you are constantly improving your credit score.
What is your credit score rating? How do you keep your credit score at the level it is at? Leave your response in the comments below.
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Top Ten Reasons Why you aren’t buying a Home right now
Posted by Top Home Loans in General Banking, Mortgage Advice on August 25, 2010
It is no mystery. Many people have left the real estate market, and you are probably one of these people; however, nobody knows exactly why people aren’t buying houses in droves. What is wrong with you people?
The top ten reasons why you aren’t buying a house
1. Property values are expected to go lower in the near future. If you were told that the investment you were going to buy was going to go lower, then would you buy it? Probably not.
2. Consumer Confidence at record lows. People are scared of losing their jobs, losing work, losing their savings, and investments. In times like this, people seek security in their savings. They won’t risk their money on a risky investment.
3. They are unemployed. It is pretty hard to buy a house when you don’t have a job. Companies aren’t hiring, so it is tough to get a job in this industry.
4. They have no savings. The recession took out a lot of investor’s savings, so many do not have enough money to put down as an investment on a house.
5. Bad Credit or Bankruptcy. Many borrowers went through rough periods during the recession. During this time, their credit may have taken a beating, and they may have even had to declare bankruptcy.
6. Fear of Failure. Making a risky investment on mortgages or housing could cause you to default even if you have a good credit rating right now. You may get terminated in the near future, and have no means to pay your mortgage.
7. Rent is Cheap. Rent is commonly a lot cheaper than purchasing a property on your own. Properties can be as much as thousands a month more than rent. For many, renting is the only way to live.
8. Too Much of a Hassle. It takes a lot of work, love, and care to look after a property. Also, it costs a lot of money to pay for what is needed to keep a house in good working order. For many, it is a waste of time.
9. Taxes, fees, heating, electricity. Utilities, taxes, and other expenses can drive the cost of living through the roof. You may think that it is affordable up front; however, after looking at the numbers, it may seem impossible for you to be able to buy a house.
10. Materialism. When you own a house, you will feel responsible to fill the house with different goods and things to make it look lived in; however, when you rent a house, then you don’t really have the need to do this because you could move at any time.
Why aren’t you buying a house? When do you expect you will buy a house? Leave your response in the comments below.