Your credit plays a key role when you want to buy your house. If you have good credit, your stand a much better chance of getting qualified for financing increases Having good credit indicates to the financing people that you are more likely to make timely payments on your financing, so they will approve the financing.
A good credit score also gets you a lower rate which can result in saving your thousands of dollars over the duration of financing. However, you cannot obtain good credit score without first establishing credit. By getting a couple of credit cards and making payments on time demonstrates to the financing company that you are able to manage your money and credit wisely, so they will most likely grant you the financing to buy your home.
There are five main factors that are used to calculate your credit score.
- Your payment history (do you pay on time?) accounts for 35% of your score;
- Your credit utilization accounts for 30%
- The length of your credit history
- Time length of your accounts for 15% (a downer for younger borrowers).
- Your credit mix and new credit applications each count for 10% each. The trickiest concept here is credit utilization—which reflects how much of your available credit you’re using on each credit card, and overall.
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Contact: Amin Shah
Shahclan Boston – OwnerFinance
Boston, MA – USA
Phone 617-787-5151 (Landline)