Non-Qualified Loan

Here Are Tips To Change Your Credit Score For The Better

By

Adults

Keeping a good credit score has a lot of benefits other than raising your chances of getting your home loan application approved. Some of its benefits could be that it helps you create a good impression toward future employers and it’s safe to say that it does more good for you than you think.

In the case of conventional home loan applications, there are specific credit score qualifications that need to be met in order to get a mortgage. And there are still a lot of applicants that get denied because of their not-so-satisfactory scores. Some would look for other loans with flexible requirements just like FHA loans and non-QM loans.

But if you want to reap its benefits other than loan approval, there are ways to boost your credit scores. Here are some of them:

Reports can have errors and you can definitely do something to correct them.

Getting credit reports regularly keeps you on track on with your score. But mistakes can happen. According to a report from the Federal Trade Commission, 20% of consumers have to dispute and fix the errors they spot on their reports.

As a result, they see a rise in their scores. So it’s good to be very particular about these reports. If you overlook on it, there might be errors you’d miss to correct.

Let our lenders help you.

 

It’s okay to have one or two credit card accounts.

You would probably ask how something that could potentially add up to your debt would help you improve your credit score. But contrary to that belief, having a credit card line could actually give your score a boost.

This would show that you could be trusted in carrying out debts and paying them on time. Also, sometimes having no credit card could put your score at risk to some degree. Just remember that having one is a responsibility that needs to be fulfilled at all times.

But then there’s a catch.

Yes, getting a credit card is okay. But it doesn’t mean that you just go ahead and swipe your card like it weaves magic. Remember that your ability to pay your debt is what would keep your credit score in good condition.

So don’t overuse your credit card. Make sure you only use them when you need them and make sure that you are being responsible by paying your dues.

Always pay on time.

Payment history plays a big role in your FICO score. If you have a late payment or if you have skipped a payment, that would definitely be reflected in your score.

Nothing spells out “responsible” more than showing your ability to pay your dues on time. Therefore this rule bears repeating as needed. So here it is once more: Always pay your debt on time.

Seek counsel if needed.

Credit counseling doesn’t really do much on your score but if you’re having a difficult time making ends meet, counseling would definitely help your management skill when dealing with your debt.

From there, applying what you have learned from counseling can make wonders towards improving your FICO score.

Click to See the Latest Mortgage Rates»

Why Do I Need to Keep Good Credit?

By

Why Do I Need to Keep Good Credit?

It’s become a practical necessity for many Americans to own a credit record and a corresponding credit score. Not only do you use credit for making your purchases, a credit record is also fundamental in helping you get access to various financing resources such as a mortgage or a car loan.

But how deeply could a three-digit number really affect your everyday, economic life? Why is keeping a healthy credit score so important? Let us count the ways.

Determines your housing budget

Majority of Americans don’t have the cash to pay for a house. That is why we go through the hassle of finding a lender, sorting out all the needed paperwork, and applying for a mortgage. Or, we look for a rental property that is affordable and within our budget.

But a big part of actually getting a home to settle into is your credit score. Both the lender and the landlord would want a reliable piece of assurance that you will not default on your housing payments. And the most fundamental, universally-accepted way to prove that is via your credit record.

If you have a good score, you are more likely to get approved. But if you don’t, you better find another option – that is, if you cannot find another alternative to prove your creditability. Your score sometimes also affects the loan amount you can borrow, and the interest that will be carried into your monthly mortgage payments.

So basically, a good score equals more affordable payments. The same goes with the rent.

Need a loan? Let us get you matched with a professional today!

Dictates what you drive

What is true for housing is also true for your car loan. If you don’t have the cash to pay it upfront, you need to find a lender who will let you borrow the money to buy the car. The lender looks at your score and if it is satisfactory, they will then dispense the money with a relatively manageable interest rate. If not, such as in the case of individuals with credit scores 620 and below, you might get denied, or be forced into the subprime market with soaring interest rates. If you have good credit, you get access to larger car loans, with better loan terms and options.

A vital consideration when starting a business

Most of the time, it’s not easy to get your ideas out there. You need money to transform your brilliance into a revenue-producing effort. That is why many entrepreneurs seek business funding via small business loans to get their own projects started. But then again, getting approved for such requires having good credit. Business loans usually have stricter requirements so when it comes to having a score below what’s considered prime, you are most likely to pass through a needle point to get the money needed.

Bills, bills, bills!

Most utility services now entail showing your provider a good credit score. That includes all your basic daily necessities that won’t be provided unless you can prove to the providers that you are a responsible payor.

A career requirement

Although not universal, many employers hesitate to hire candidates or applicants without an established credit score. Your score could also be the basis for salary offers and promotions.

As you see, having a credit score – and a good one at that – is an integral part of the American way of life today. Establish good credit habits, pay your bills and dues on time, and regularly check your record for errors. Being proactive in your credit info will help you ensure you’re ready for when you need it the most.

Click here to get matched with a lender today!

3 Things to Avoid While Improving Credit Score

By

3-things-to-avoid-while-improving-credit-score

These days, having a less than perfect credit score ain’t all bad. If you fall short of getting a 700 on that credit report, you’ll still find lenders who’ll be willing to accept you as a borrower. Loan programs like those administered by the FHA are also more forgiving of those with blemished credit.

Legislation like the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 have also paved the way for banks and credit unions to offer financial products outside of the prescribed loan guidelines. If you are self-employed with limited documentation, you could still be granted any of the so-called ‘non-qualified’ mortgage products like stated income or no documentation mortgage loans.

Is a non-qualified loan the answer to your financing needs?

The information above should prove useful if you really need to buy a house now. However, if you can hold off on the purchase, it would be wise to work on improving that credit score first. Disputing errors on your credit report and seeing to it that bills are paid on time are just two things you can do toward this end.

To ensure that you don’t fall off the wagon while building better credit, here are three things you should avoid.

1.Moving debt around

Owing a considerable amount of debt has an adverse effect on your credit score. As such, it could be tempting to move debt around so this can be resolved quickly. However, moving debt around could lead you to owe more, which could then be more difficult to pay.

2. Opening too many credit accounts

Avoid opening too many accounts in order to have a better credit mix. This practice can pull down your credit score. What you can do instead is focus on having one or two credit cards that you can maintain.

3. Failing to update relevant personal information when necessary

Not informing your creditors that you’ve changed addresses can lead to bills not being received on time. This could lead to late payments for bills and other forms of debt. In the same manner, failing to notify of a name change could result in inaccuracies on your credit report.

Get more insights on improving your credit score from a reputable lender.