Taking care of your Credit score is very important. It does not matter if you are single, with a family or a young professional starting a family. Credit Scores affect everyone unless you are a caveman and lives off the grid. Your rating affects how the lender views you as a borrower. This is why it is very important to take care of our scores. Basically, it is very simple, when you someone money pay them on time and with the correct amount. A low Credit score impacts the pricing of loans when you apply for them.
It may be difficult but it is not impossible to get a loan with a low credit score. A number of lenders and even the government itself also tries to find funding that will cater to giving access to the financially challenged. Most of the lenders now have “special” programs that will actually incorporate a low credit score in order for them to grant a loan to people on the lower side of the credit ratings. You can still get approved but will be needing a lot of work.
Arm yourself with knowledge, some scores can be affected by mistakes on your purchases or some inquiries on your credit score by lending companies can be unauthorized. Or sometimes you thought you paid off a bill but a decimal point might have omitted a single dollar making you delinquent in payments. Check on these so as to eliminate them from giving your credit harm.
The key is knowledge of everything you do especially if you are transacting with your credit card. Take note and list down every expense you use it for. If you find errors on your Credit Report, send a dispute letter to the Credit Reporting Agency where your report came from. This can drag on for quite some time and If you plan to get a mortgage in the future, start working on this now if you have not done so.
It is not only the Score that lenders look at in a report. In here they can also verify your Identity, address, public records, and your employment history. Sometimes if you have an all too common name, the other person’s credit report MAY actually be pulled up instead of yours. Be very mindful in filling out forms especially in banks.
There are also loans that you can apply for to get that home you wanted, fha loan made simple, a VA loan or a USDA Loan are some of the options readily available if you do not have time to repair your credit. Some banks may also allow you to have a loan but be prepared for higher down payments and Interest rates.