WAYS TO ESTABLISH GOOD CREDIT HISTORY SCORE: Part-2
Having a good credit history score is good, no matter what is your financial goal, but the very first step of mortgage home loan is credit history score. When you will apply for the mortgage with the loan application, your lender will look after some factors. The credit score is one of the important factors which your lender will check to approve the mortgage home loan.
A credit score is a single number made up of all your credit history. It is also known as FICO® credit score. While giving an approval, credit history score will help your lender to determine your creditworthiness. This is the same for other loans which everyone generally required like the car loan, credit card and many more. The factors on which credit score is based upon:
- Payment history – 35%
- Debts owed – 30%
- Length of credit history – 15%
- New credit accounts opened – 10%
- Healthy mix of credit (credit cards, loans, etc.) – 10%
WHY GOOD CREDIT HISTORY SCORE MATTERS
Buying a home is not just about choosing a perfect home for your future. You have to be prepared for the biggest investments you will make throughout your life. When you will apply for a home loan, your lender will check few details to ensure you can afford the monthly installments or not. If you have the good credit score, then your lender will happily approve your home loan. If you have bad credit score then it will be difficult for you, but that doesn’t mean it is impossible, you can improve your credit history score easily.
HOW TO ESTABLISH GOOD CREDIT
There are many ways to build a good credit score, but it will take the time it can’t happen overnight. You can start building your credit whenever you will feel like because it’s never too early to start as the sooner you will do, it will easy for you to buy a home. In this article, we will discuss some methods for building a strong credit history score.
KEEP YOUR OLDEST LINE OF CREDIT OPEN
It is important to building a credit history score. As everyone knows that no one is born with perfect credit, you can only develop your credit through your movements over time. If you want to take benefits early, you can start maintaining your credit as early as you can. For example, if anyone takes out the student loan at the time of college, by taking that loan their credit will establish automatically. It is an opportunity for young adults to start building their credit history score at a young age. If they will pay their loan on time and pay bills in time, they will possibly get their first mortgage property at the age of 24.
AVOID BIG PURCHASES WHEN YOU PLAN TO BUY
If you want to purchase a home, you should pay attention to some of the common facts. If you are planning to purchase a big, then there are more chances of getting approved for a loan even if you have worked hard to build your credit history score. So, you should avoid purchasing a big home until you feel like you are financially comfortable affording the purchase.
MAKE PAYMENTS ON TIME
If you want to build a good credit history score, the main significant is you should be responsible for your financial decisions. If you will be financially responsible then you will have the ability to get a new line of credit like home loans and other loans. There are few steps which you can follow to be financially responsible. You should pay all the bills on time, bills like medical bill, car installments, mortgage, or any other type of bills which have due dates. If you pay after the due date of the bill, it can damage your credit score. So, make sure you pay your bills before the due dates in order to build a strong credit history score.
BUILD YOUR CREDIT FROM SCRATCH
You don’t have to feel discouraged at the beginning of your credit history score. It is easy to build your credit history score. There are simple methods which you can use for getting started.
Become an authorized user on someone’s credit card
You can be an authorized user of your any family member who is willing to add you as an authorized card user, by doing this it will easy for you to build a good credit history score. But, you should care about the monthly payments for the card. Because if the family member doesn’t make monthly payments on time, then it can affect your credit history score.
Apply for a secured credit card
You can only apply for a credit card if you have a saving account. Because the money which you have in your account, the creditor will take it as collateral to secure the card. You can build good credit history score by making payments through credit card. If you are making payments from credit card then you have to pay off the balance also.
By following all these steps and the steps which we discussed in the previous blog, you will be on a right track to build your credit history score or to improve your credit score. If you will need any help, you can contact us at (818) 322-5626. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan.
We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax returns, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.