Turn that movie in on time!
When working with Buyers I always get asked about how they can boost their credit scores especially when trying to qualify to purchase their first time home. My 13 years experience in the finance industry spanning from retail banking, credit, to mortgage brokering has taught me to not to take your credit history for granted. A lot of folks don’t understand that something miniscule as not paying your movie rental collection can come back to truly haunt you on your credit report; and thus prevent you from buying a home sooner than later.
For instance, just recently I had a new buyer pre-approved for a loan, and we discovered that he actually can not start looking for a home until early next Summer. He had to correct a major derogatory item on his credit report beforehand. I told him to please not feel defeated! Then, I provided him with a template letter addressing all three credit bureaus along with supporting documentation. Finally, I re-assured him that I am willing to wait and assist him along his journey to home ownership.
As a result of this scenario, I researched a recent and very useful article, entitled, “Win at the Credit Scoring Game” from CNN Money that I provided to my client and wanted to share with you as well. The article provides excellent strategies to improve your credit rating, thereby further increase your chances at future home ownership sooner than later. Check out: http://money.cnn.com/2009/08/24/pf/credit_score.moneymag/index.htm
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5 Responses to “Turn that movie in on time!”
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Claudia,
Thank you very much for your post! You are so right, everyday things you do affect your credit score. Even if a person is not buyer a home, car or big ticket items, insurance companies, health insurers etc. check your credit score. If your score is high you will pay less for insurance as you are a better risk.
Also, its a good time to remind buyers not to put a lot of debt on their credit cards prior to funding a loan as lenders check credit scores prior to funding. So that couch they buy might be for a home they thought they bought!
Brian
Great post – people don’t realize just how credit scoring works. Things that a person would percive as a move that would help your credit score, such as canceling credit cards can actually effect your credit score.
Dear Claudia,
Excellent article! I’m so glad you have joined the blogging group. I’ll never forget the first lesson I got in credit scores way back when. My really adorable clients were buying a mobile home. Right before the close, they went out and charged a bunch of stuff for the new house. The lender did a final check of their credit, saw all their charges and (almost) didn’t give them the loan. From that date forward, I warned each and every client to wait until they actually owned the home to make any big purchases.
Nice Post Claudia,
It is important for us to know how to help our credit scores. It is important for people to know just how much their credit score means, especially when planning to purchase a house.
There are many different factors and issues to become educated about when buying or selling a home and it is important to learn as much as you can. Thanks again for the great post.
Adam
Claudia,
Great point. I also had a client who unfortunately, could not buy a house last year becaufe he had bankruptcy. He learned it the hard way that credit is really important in your buying ability. He is now working on improving his credit and cleaning up the bad history.
Shokoofeh