A credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan, since they’re not really in a position get to know you to judge your character.
A few tips for raising your credit score:
- Pay your bills on time.
- Pay off debt on credit cards and keep your balances low
- Don’t apply for a ton of new credit accounts, since that creates hard inquiries
Hard inquires occur when a lender reviews your credit score, and can potentially have a negative effect on it. Soft inquires, on the other hand, occur when you check your own credit score and don’t have a negative effect.
In a nutshell, the better your score is, the better your chances are of getting a favorable loan, since lenders will take that to mean you have a pretty good track record of repaying your debts. Make sure you know your score and ensure that lenders have current information about it.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: Your Guide to the Closing Process