Bad credit is one of those things that can haunt you for years. This is one of the toughest challenges for interested home buyers who may be ready to settle down into Port St. Lucie real estate but are finding it hard to secure a loan because of their credit history.
Mortgage lenders turn to credit reports to assist them in determining whether or not a prospective home buyer is worth investing in with a home loan. Financial institutions will check your credit and past financial transactions precisely to see if lending to you would be a smart move. This is why it is always important to keep your finances in good standing.
How to Know if You’ve Got Bad Credit
Nearly everyone interested in buying Port St. Lucie real estate will need to have a home loan which requires decent credit. Many consumers have no idea what their credit standing is until they apply for a loan and are rejected.
Checking your credit report and FICO score is an important first step in securing a home loan.
FICO ratings can be lowered by corporations that report on past financial transactions; however, mistakes can happen. It is critical that consumers check their credit report carefully. Often, many discover a number of blunders on their credit reports which negatively affects their FICO scores.
Checking Your Credit Report
If you haven’t checked your rating yet, it is time to do it.
Every consumer is entitled to receive a copy of their credit report yearly from each of the three credit reporting organizations. These are Experian, Equifax and TransUnion. Request a copy and then audit the credit report carefully paying close attention to any disclosures that are negatively affecting the score.
Check whether the reporting is correct. If necessary, go back to your bank or account filings to verify that the noted failure to pay is correct. If it isn’t, you can dispute the claim. If it is related to a payment you may have faltered on, try to find out if there is a way for you to fix the problem. You may be able to enhance your credit profile which ultimately may assist you in securing a home loan.
Support Your Credit Score
While there’s no quick fix for bad credit, finding a way to enhance your credit profile eventually can raise your score. Ways you can start shifting bad credit to good include:
- Paying off any collections or judgments as fast as you can.
- Past-due accounts and those registered as over-the-limit need to be brought up to date.
- Pay all your bills on time.
- Lower your credit card debt to 25% or less on every card.
- Don’t open any new credit accounts, but don’t close any either.
- Use an old charge card that you may not have used in awhile and then pay it off quickly. This will show you can dependably handle credit.
It is nearly impossible for anyone to be able to suddenly straighten out all their past credit missteps. If you are not sure what to do first, get advice from a reputable lender who can recommend the fastest ways to raise your credit score.
