In the previous articles, we explained that the FICO score has a big impact on the process of getting a mortgage, but it is clear that not everyone has a good credit score. In this article, we want to examine the effects and methods of praise in detail.
When you feel that you need more information, you can find answers to your questions by visiting the real estate timeline page and seeing all the steps in buying real estate!
Every time you use your credit, you leave a trace
And as you know, credit is the way you make your purchases and pay off the expenses later. Every time you use the balance, it will be added to the register. Credit reporting companies collect this information and prepare a report. The explanation of these reports is the extent of diligence in paying your credit installments. This report does not show individual scores, but using the information, FICO determines your credit score.
Of course, if you don’t have credit, you can get a mortgage. Some lenders use other information to determine your credit score, such as rent payments, invoices, insurance, etc. Of course, you must keep the proof of your stools.
Why does the credit score vary each time?
Providing the three major credit companies (Equifax, Experian, and TransUnion) with separate reports and constant updates. I don’t believe that many of the mortgaged people have reviewed all three reports, so the degrees of one partner differ from another. In addition, the extent to which the reports contain problems affects the results.
Is your credit report accurate?
Credit reports can contain errors that lead to lower scores, and these errors are not common. Of course, most of these things are not serious, for example, your name may be written incorrectly or your phone number is old. It may even be incorrect. If you are not aware of these problems, it is certain that you will not be able to correct them, so carefully verify all three reports before applying for a real estate loan.
How to check your credit report?
According to the law, you have the right to obtain a free credit report for each of the three companies mentioned above. Remember that the credit report is only your usage record and the credit score is not written in any of these reports, and you have to pay the amount to get the credit score. You can get your free reports by visiting annualcreditreport.com or by calling 877-322-828.
Additionally, a real estate agent can obtain your credit reports for a nominal fee, which usually shows your credit score. Qayam al-Murdazun also examines the same documents and therefore can compare them.
How to correct credit report errors?
If you notice an error in the annual report, you must first report it to the credit bureau. The website of each of my companies contains a form that you can use to register your error reports. If you wish, you can also write a letter manually using these templates and send it to the required office with copies of your documents (but not the originals).
Please note that in addition to the name and title, I must mention all the problems in my speech and ask for corrections during the submission of documents. To contact the required office, visit the relevant website: www.equifax.com, www.experian.com, www.transunion.com.
After receiving the letter, the department has 30 days to send your documents to the concerned company and make corrections if the information is correct.
If the validity of your claim is registered, the credit bureau must provide you with a free and corrected copy of the report.
If the corrections are not done, you can add a written complaint to the documents so that the borrower can take them during the review.
Strategies to improve and protect your credit score
Even the most cautious person may have some negative elements in his credit report. If this is you, it is good to know that al-Morzadin do not expect to see an ideal speech. They just want to know if you can hire credit responsibly. Remember that the past is past, but credit scores can be improved over time. Here are some items that will help you along the way.
Paying your bills on time
I’m sure this is pretty obvious, but it’s also the best way to improve your credit score. If there is an outstanding bill, try to pay it off and don’t worry about my bill now.
Notify the lender if you are unable to pay your installments.
If you are facing a problem in paying the payments, contact the lender you are dealing with. And they will put other solutions in front of you.
Keep your credit card balance low
as getting large balances can hurt your grades. If you use a lot of credit, the lender may think that you are more likely to default. It is usually best to keep your credit card balance at least 30% of the maximum amount.
Don’t mention your credit card debt,
it’s better to pay off your debt instead, because it will cause a big loss to your credit score.
Don’t close your accounts
while closing unused accounts or opening multiple accounts suddenly, you will be harmed.
Don’t spend a lot of time in getting your loan
.
It is good to have a variety
of credit cards, but if you do not need a new account, it is better not to open an account. The new calculations do not only improve the grades, but can also harm the price.
Get help from one of the experts.
If you are not sure what to do, contact a credit advisor or a home customer advisor to avoid unintentionally damaging your credit score!
Bad credit score is not permanent
What should we do if we have economic problems? It is true that late payment and foreclosure can be seen in your credit report for 7 years and bankruptcy for 7-10 years, but they don’t stay there forever. You can improve your credit score and buy a house even in the worst circumstances.
The more information you have about your balance, the better I can control it. Make sure to observe the following points regarding credit:
Closing the account does not mean hiding it: even if you close the account, it will remain on your credit report for 7 years and affect your score.
Paying off late fees does not lead to the removal of anything from your credit report: if you have not paid your debt and it is included in your credit report, it will not be removed until after the debt is paid. Of course, this has a positive effect on your credit in the long run.
Don’t ever look for a quick solution: some companies claim that they can improve your credit score against fees. And in almost all cases, you can do these things yourself for free. If you need help, you can get help from my certified counselors through the National Credit Counseling Foundation website at nfcc.org.
Don’t worry about checking your credit report: Checking your annual credit report on time with Annualcreditreport.com or your home customer advisor will not affect your score.
Note that it is almost impossible to get a full degree. According to FICO, half of consumers only get a score of 850. Even if you get this score, remember that there is always the possibility of changes.
Have you verified your identity recently?
Some people can do serious harm to you during the abuse of your information, and unfortunately, this has become a very common thing. Crimes can be committed using my name, social security number, credit card number and other information. People steal this information from you by looking in the trash, stealing your wallet, or even pretending to be representatives of financial companies. Sometimes, he does not pay attention to this theft except when his companion is harmed. Therefore, it is better to be careful and check the balance of your account regularly to know if everything is correct. Remember that your credit report will be fulfilled only once per year.
As a borrower, you have legal rights
To manage your credit properly, you must be aware of your legal rights. And below are some important rules
Law of Fair Credit Bills
Using this law, you can file a complaint about the errors that occurred, such as unauthorized purchases. In this case, he is no longer responsible for the payment of these unauthorized amounts.
The fair credit reporting law
guarantees that your balance is up-to-date and free of defects. Using this rule, you can check your credit report and report it if you see any problems. Also, according to this law, negative information will remain on your credit report for up to 7 years only.
The Law on the Practice of Fair Debt Collection
states that creditors are not allowed to collect unpaid debts from you using fraudulent methods.
The card law
protects the carrying of credit cards and determines the notice periods and interest limits and allows you to close your accounts if you wish. Of course, this law does not cover credit cards with variable interest.
Consumer Credit Protection Law
and according to this law, the credit provider must determine the terms and conditions so that my customers can compare different types of loans. This means that the annual interest rate of the loan (APR) and the total credit costs should be determined.
The Law of Equal Credit Opportunities
does not allow the provision of credit by refusing to provide services to people based on gender, race, marital status, religion, age, or any other conditions. If a company refuses to give you credit, it must inform you of the reason within 30 days.
Is it a violation of your rights?
The Consumer Protection Bureau (CFPB) provides credit information and consumer rights and monitors compliance with the law. For more information or to file a complaint, visit www.consumerfinance.gov or call 855-411-2372. You can also file a complaint locally by contacting the Public Prosecutor’s Office and the Department of Consumer Rights Protection.
Now that you know more about credit, use our tariff!
Check your credit report: Remember that you can check your credit report once a year for free. If you see our mistake, try to fix it. You can view your three credit reports by visiting www.annualcreditreport.com (or by calling 877-322-8228). Note that you cannot receive an official report except in these two ways.
Checking your credit score: If you don’t know your credit score, you can ask one of the three credit bureaus or ask a real estate agent to get it on your behalf. Then select your conditions using the table below:
Maybe you won’t be able to get a mortgage | 599-350 |
Can I get a mortgage with a higher interest rate? | 680-600 |
You can get a real estate loan with reasonable amounts and interest | 680 and up |
You can get the best housing loan with the lowest interest rate | 750 and up |
When you feel that you need more information, you can find answers to your questions by visiting the real estate timeline page and seeing all the steps in buying real estate!