The credit score is a number that the mortgage lenders use to determine your credit worthiness. It is based on the statistical analysis of your credit report. Equifax, TransUnion and Experian are three major credit bureaus in America that accurately calculate the score. It is the most reasonable, unbiased and reliable underwriting tool available to the mortgage lenders. They use it to take three important decisions viz. the amount of loan that can be given to you, the interest rate that should be charged on the loan amount, and the terms and conditions for paying back the loan. Here are a few things that you can do to bump up your credit score.
• Make all your credit payments on time- The payment history has a dramatic effect on the credit report. All those payments that are not paid within 30 days show up on your report and adversely affect it. The negative marks stay on the report for 7 years. Hence, always pay your bills on time. Also, try to pay more than the minimum payable amount.
• Ensure that your debt load is tightly under your control- Sooner or later, you would have to pay back your debt. If you wind up your debt load quickly, you will become eligible for new loans. Thus, if you owe a significant amount of loan, then stop borrowing and pay back your old loans first. Continue reading ‘Bump Up Your Credit Score’ »