Credit Rating 101: What You Need To Know
Highland Mortgage Lender – Larry Penilla
When it comes to mortgages, your credit score is something that every lender will look at. If you’re buying a home for the first time or applying for your first loan, you can expect your credit rating to be one of the first things investigated by a lender.
But what exactly is a credit rating? What influences when it goes up or down?
As a mortgage lender, I deal with people’s credit scores every day. If you’re new to the mortgage game and credit scores, then you have certainly come to the right place!
What is my credit rating?
A credit rating (credit score) is a number that tells someone what your creditworthiness is. Do you pay your loans back on time? Do you miss a lot of payments? A credit rating is a three-digit number. The better your credit rating, the more likely you are to repay loans and improve your chances of being approved for one.
How can I improve my credit score?
If you’re applying for a mortgage and want to improve your credit score, there are a few tips to do so. Ensure that you always make your payments on time and that you never exceed your limit on your credit card. If you make late payments on a frequent basis or you’re constantly at your limit, it could potentially scare lenders away by making them think you aren’t reliable.
Additionally, consistently checking your credit report to verify that there are no mistakes on it can help prevent errors from holding you back from being approved.
What else are credit scores used for?
In addition to being used by mortgage lenders, credit scores can also be used by landlords, property companies, insurers and investors. All of these use your credit rating to see whether they should insure you or lend you a mortgage.
How can I check my credit report?
If you want to view your credit report and ensure that there is nothing suspicious going on, you can do so by going here. When doing this, verify that all of the information on it is accurate, including your name, address, accounts and loans. Even if you have great credit, consistently monitoring your credit report is important to ensuring it stays that way.
If you’re thinking about applying for a mortgage, consulting a Highland mortgage lender like myself is a great first step. I can help ensure you get the mortgage that is best for you. If you have a credit rating that isn’t great, I can provide you with helpful ways to improve it.
For more information on how I can help, contact me now!