Credit scores can have a dramatic effect on a borrowers ability to get the best rates for many types of financing including a home mortgage and a car loan. If your credit score does not meet minimum standards you may not even have the ability to get a home mortgage period!
There are a number of factors that the credit bureaus use to calculate your credit score. One of the most important factors they use is your past payment history which generally accounts for 35% of your credit score.
In the mortgage article, How to improve a credit score, (look under CREDIT in my blog), all the various ways you can achieve and maintain a great credit score are discussed. If you pay attention to these credit scoring factors you will be well on your way to achieving an exceptional credit score.
When it comes to your home there are ways to improve a credit score with specific home finance tips.
Pay Your Mortgage On Time
It goes without saying that paying your bills on time is a must if you want to have excellent credit. Above all else you want to make absolutely certain you pay your home mortgage when it is due. As mentioned above, past credit history is a critical factor on how you be viewed by a lender when applying for financing. There is nothing that will hit your credit harder than a missed mortgage payment. Credit scoring agencies will look at a missed mortgage payment in a far more negative light than a missed car or credit card payment. If at all possible you should always consider making your mortgage payment before other bill that are due.
To continue reading and see more of the advice for increasing a credit score see Home Finance Tips for Increasing Credit score
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Article compliments of Bill Gassett