If you managed to weather the Great Recession of 2008-2012 relatively unscathed, you may have good credit score.
And that is an important factor in the coming years, as more Americans come out of the crisis and recover. and look for loan options for a new home, car, or business. Banks have restricted your borrowing needs in recent years, and if you don’t have a good credit score, you may not get any credit. Get a loan.
This also applies to refinancing. A few years ago, we built our dream home and asked our bank about our creditworthiness in the mortgage process. Since then, we have refinanced twice and each time our banker has had to check our solvency query.
How much is good credit worth today? Well, to get any type of home loan, a good credit score is the absolute key to finding a mortgage today. Bankrate advises that it’s best to forget about looking for a loan unless your credit score is 620 or higher right now. It just won’t happen. Always maintain a good credit score.
When and how to buy a property?
Most lenders are looking for mortgage applicants with a minimum credit score of 680 to meet the new Freddie Mac and Fannie Mae state credit guidelines. Some applicants with credit scores of only 620 find some FHA loans, but most lenders only accept credit scores higher than 620. Buying a new car is no different now. If you want to upgrade your bikes, you need a good credit rating to apply for a car loan. US auto sales this summer were higher than in previous years. US automakers’ sales rose nearly 20 percent in August, according to Forbes, the best month for new car sales since early 2008.
This was a direct result of three big factors: pent-up demand from car buyers for new models, zero percent financing for buyers with excellent credit ratings, and a better selection of fuel-efficient cars that drive purchases, abundantly within. than a year, even higher gas prices so if good credit is the key to improving your home or car’s chances, you should find a way to improve your credit.
Using a few tips to improve your credit score means more financial flexibility for years to come.
Pay the cards with the lowest balance and you will maintain a good credit score
This tip for cashing out your low-balance credit cards comes from self-proclaimed radio and TV financial guru Dave Ramsey, and it’s not without controversy. Ramsey suggests that if you pay off the lowest credit card balances first and then clear them, you will have a satisfaction problem that will continue to spur you on to reduce the rest of your debt.
Many people do it by borrowing the Club or other P2P lender used to reduce fees and then pay off the new loan. P2P loans bypass banks. You apply for the loan on one of the websites and expect people to invest in it.
As for the application process, you will need to review the paperwork just as you would a traditional personal loan from a bank. You will need to provide proof of occupation, some financial reports, and more. If you decide to take out a loan through the Loan Club, you can get up to $40,000 at up to 6% interest.
Secure credit cards always maintain a good credit score
A secure credit card is an easy way to improve your credit score. A secure credit card is like a credit card with training wheels. Secure credit cards are like any other credit card, except you need to deposit money before you can get one. This is the protected part. The company wants to make sure you’re paying your credit card bills.
There are many banks and credit card companies that offer a secure version, each of which requires a different deposit. Some cost just $50 while others are much higher. One difference between companies is what they do with the money you invest. Some companies allow this deposit for | Earn interest, others don’t. Nobody is going to pay high interest rates, but money is money.
With secured credit cards, there’s still a chance you’ll be turned down, but the requirements are much less strenuous than with a traditional option. Once you decide to cancel your secure credit card, you will notify the company and the deposit money will be returned to you.
As far as credit is concerned, you must have a credit score of at least 600. You also need a decent credit score. If you haven’t started with your credit history yet, you should probably look elsewhere.
Know how to identify your credit history
You are entitled to a free credit report every year. You should definitely take this opportunity. A quick visit to freecreditreport.com will direct you to obtain a copy of your report from one of the three major credit bureaus.
You should also check your online identity and score for possible errors. Sign up for an online identity check with Lifelock to see if your accounts match the credit reporting agencies’ results.
In 2011, identity fraud increased by 13 percent, with identity fraud affecting more than 11.6 million adults in the United States. The average identified cost of identity theft is around $5,000, and some reports suggest that identity theft victims take a year or more to discover which identity items have been stolen.
Using a credit and identity theft surveillance service like Lifelock can help you avoid financial expenses. Notification right after an identity theft allows users to stop the theft before it escalates into larger amounts, always maintain a good credit score.
Have your payments automated
Ramit Sethi, bestselling author I Will Teach You How To Get Rich, offers loan-saving tips for anyone interested in reducing debt and becoming more financially free. It shows that 35% of your creditworthiness (most of it) reflects your payment history.
So if your payment history reflects lateor missed payments, it can put your credibility behind you. The balance drops by 100 points, increases the APR on credit card accounts, and adds a lot more money to your car or home payments.
So your good advice is to automate your credit card payments. Forgetting to write a check or make a one-time payment online can have a much more detrimental impact on your creditworthiness. Obviously, this strategy doesn’t address deeper issues like losing your job or home, and you simply can’t make the payment. Bat always maintain a good credit score.
Knowing how to reduce credit card payments and increase your credit score can make a huge difference in your life when it comes to applying for loans for new cars, homes or more. When you know your fiscal responsibilities and overcome liabilities, your future will be more stable.
