A few months before you should start looking for a house, to take steps to "obtain credit approval for your loan. Your first step should be to make a list of all your loans and credit cards, is the company name, account numbers and monthly payment. This will help analyze the information on your credit report, too. Add all closed loans and credit accounts, if these documents are available.
1) Get a financial --> Check-Up
Next, an appointment with a good mortgage lender and ask for the full recognition of credit. As part of the approval of your credit report will be ordered. It contains data from three credit bureaus - Equifax, Experian and TransUnion. The report shows three credit scores - one for each agency. The interest rate and type of loan are available at your credit score in context.
TheHelp of a mortgage professional to help you understand your credit report and tips on how to improve your score, is of inestimable value. For the average person, interpreting a credit report, and management of errors is a daunting task. Wirtschaftsauskünfte filled with frustrating jargon and codes. They are not written for the general public to read. Even more intimidating is the task of communicating with rating agencies to dispute or correctInformation.
2) to correct mistakes
Credit reporting agencies are often errors in the database. Everything that is done by computer. Data is entered into the file from your computer. A computer weighs your data using complicated mathematical formulas for credit score to arrive.
Almost everyone has paid bills late for one reason or another. Perhaps a bill was sent to the wrong address, or have had a dispute with a supplier. It is likely that you have some questions about yourreport can deny that, or should be corrected. Each of the websites of the three main agencies has a page of dispute resolution. Feel free to use it.
3) Deal With Real Credit Issues
You can also have serious credit problems in a time in the past. The review of this can be emotionally draining, and opens the underlying situation that caused the credit problems. You will be advised of how long applications will remain on your report, and how to rebuildTheir reliability.
Either you have a constant habit of spending more. In this case, you should speak with a financial adviser or a personal advisor to help you work the debt and create better habits. The National Foundation for Credit Counseling - http://www.nfcc.org - offers low-cost assistance for serious credit problems. If they are circumvented under the supervision of your debts will not be able to obtain new loans during the ofMay be work-out - years. Before then, ask a mortgage lender or financial adviser, if there is a way to use your credit without their supervision.
4) verify the claim file
A law approved in 2005 requires the three credit rating agencies a free credit file disclosure every year. It was suggested that a file from the first, in January, you may be absent from the second day of May and the third inSeptember. This is the central location where the file can be ordered at: https: / / CRA / www.annualcreditreport.com / index.jsp
The purpose of this law seems to be helping people to discover, if they have become a victim of identity theft. So that you can not check the file for a new loan does not come from you.
If you report the benefits of free credit file, you should check errors. Use the credit report that you check with your mortgageLenders to compare with data in the credit file. Please note that the free credit file disclosure is not a credit report. It has no credit score.
5) Understand Credit Scores
Less than 620 - Poor
620-680 - Media - You may need to put more money in the loan.
680-720 - Good
720-800 - Excellent
800-850 - rarely seen
6) the rules
The information contained in your creditgenerated by these factors:
Payment of 35% - Payment history - invoices of time is very important. Today, many people use auto draft or pre-written checks to pay through bank accounts online. To avoid this problem, the late payments. If you have a good credit score, do not pay late!
30% - The ratio of credit available to what you used, is an important factor for your guests. If you draw more than 50% against the credit limit available, this willCounted. For this reason, it is useful to open up old credit card accounts, even if not using it. They build the total amount of loans available, compared to what you have to pay.
15% - Length of credit history for a loan has an impact on your guests. A loan with experience reaches higher mark. For this reason, it is not a good idea to open credit cards with low first prizes, then quit after a few months andopen new credit cards.
10% - The number of inquiries made on your credit report affects your score. Whenever you have a credit card or a new loan is taken from your credit card. Keep these to a minimum. A recent law has made it possible for people shopping for houses or cars are most in demand) the same industry (mortgage or car, made during a period of 30 days without penalty. However, to be safe, you allows your creditReport will be considered only if absolutely necessary.
10% - types of loans can be used in conflict with your guests. Loans to financial leasing company, signature loans, furniture loans and some retail loans are considered poor if high prices, and can count against you.
7) increase the credit score
It 'easy and necessary to borrow money. We usually make everyday purchases with credit cards, and set up loans for homes, cars and otherPurchases. Your credit score is' particularly important when the purchase of your home. Affect the type of loans available, we require a deposit, and interest rate. A low value, you can make thousands of dollars in additional interest over the years. Even insurance companies factor your credit score into their decisions. More than ever, you need a good credit score, or you pay the price.
Finance providers, rental agencies, car dealers, insuranceCompanies and credit card companies are not going to help you improve your credit score. In fact, they have an economic interest in charging a higher rate. It is up to you to be proactive in understanding and improving their credit score. A good place to start when you start the loan approval to buy a house. It 'a good habit to have.
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