With skyrocketing home prices and rising mortgage rates, many home buyers are frantically looking for ways to cut down on costs wherever they can. Rather in one area, it makes sense to ramp up spending, experts say. Hence, start paying off old bills, debts, and credit cards.
Having a good credit score can save home buyers tens of thousands of dollars over the life of the mortgage.
Credit scores give lenders a fast, objective measurement of your credit risk. As a result, before the use of scoring, the credit granting process could be slow. Consequently inconsistent and unfairly biased. Finally, credit scores, especially FICO® scores, have made big improvements in the credit process. Why?
- People can get loans faster
- Credit decisions are fairer
- Credit “mistakes” count for less
- More credit is available
- Most noteworthy, currently Interest rates are lower overall
A good credit rating is the most valuable thing we have when it comes to financial independence! Your credit score (also known as your FICO score) is basically a numeric value representing your creditworthiness (the likelihood that the person will pay debt in a timely fashion). Your score is derived from the information on your credit report, sourced from credit agencies. Your credit report will have a significant affect on your life, so why is it that so many people pay little attention to their credit report?! Truth be told, many Americans have not even LOOKED at their credit report. The way I see it, there are two reasons a person would choose to disregard such an important aspect of their finances (and therefore overall quality of life). Reason one, he or she simply does not recognize the importance of their credit score; or two, as a result of past negligence in bill payment and/or debt repayment, he or she has avoided coming face to face their credit report.