Want to buy your house? Do you find that you do not have sufficient money to fulfill your dream? Well, if answered yes, then you must be thinking to obtain mortgage loan. Your credit score plays an important role in this situation and the lender will be assessing it before approving the loan. The lender will agree to approve your loan request at an affordable rate of interest only when he finds that you have good score. In case, your credit rating is really poor, then you should boost your score before going to the lender for home loan approval. Other wise, there are high chances that the lender will decline your request or impose exorbitantly high interest rate if he decides to pass on your loan. It is advisable that you improve your credit score so that you may become credit worthy and get loan approval easily.
Credit score – How can it influence your financial life?
Credit score has a vital role when you are planning to take out a loan for purchasing home, starting a business or making a big purchase. You need to know that your credit score is actually a three digit number that the lenders will take into consideration before they may provide you any credit. This will ensure him whether or not you will be able to pay off the entire loan amount on time and how you have managed your money in the past. As such, the banks and the different lending institutions will make it a point to evaluate your credit score before approving loan.
FICO score – What do you need to know about it?
The credit scoring system has been made by the Fair Isaac Corporation and is known as FICO score. The three credit reporting bureaus – Equifax, Transunion and Experian provide you a copy of your credit report free of cost every year. However, the credit score offered by the three credit bureaus may differ slightly from one another. The credit score will allow your lender to know how you have managed your finances earlier and the risks that he has to bear in lending you money. Thus, the more risky borrower you are, the less chance you have of getting loan from the lender. So, if you are having bad score, it is suggested that you go for credit repair soon. It is important that you build good credit score and gain the trust of your lender before applying for any loan.
Getting a loan has become necessary these days. As such, you must maintain good score so that your loan application may not get rejected by the lender. It is important to note that not only the banks and the lending institutions will check your credit score while giving them loan but the employers will do so too in order to know your credit worthiness before offering you the job. So, you should go for credit repair immediately if your score is not at all good. This will lessen your chance of not being selected for the job.