If you’re thinking of buying your Ocean Edge condo, make sure you do your homework and check your credit score. So many people do not know their credit score, or how important it is in determining your ability to purchase a home. If you do check your credit score and it is low, what can you do? There is no need to worry if you check your score and it is low. There are many ways that you can fix your credit score before you buy your Ocean Edge condo. However, you do need to work quickly because it can take time to correct credit issues. Here is how you can fix your credit score before you buy your Ocean Edge condo!
What is Your Credit Score?
Your credit score is a number that can range from 300 to 850. A score of 300 is the worst score you could get, and 850 is excellent which is the best score you could possibly get. Typically people have “Good” or “Very Good” credit, it takes discipline and work to get an “Excellent” credit score. The work involved in maintaining and increasing your credit score is monitoring it regularly and making sure that you are on top of your finances.
Sometimes information will be given to the credit bureaus that is false, so if you find information on your report that is not true, you need to correct it as soon as possible. Taking care of this incorrect information will help to fix your credit score before you buy your Ocean Edge condo. Foreclosures and bankruptcy are two of the major factors that will severely impact your credit score. It takes time to bring up your credit score when you have one of those issues on your financial history. Smaller issues such as unpaid bills or being late paying your bills also add up and can really lower your credit score. What other factors go into buying a home? Check out our blog, “Top 6 Home Buying Questions – Answered.”
Where Does Your Credit Score Come From?
The credit score comes from a variety of sources. It is developed from information obtained from a number of sources of credit given to you by different agencies. For example, credit card companies, car loan agencies and banks are all types of agencies that lend money to you on credit. This money is lent to you with the understanding that you would pay it back in addition to an interest fee that is charged for lending the money to you in the first place.
This line of credit will be used to judge your ability to pay back money that is lent to you. Your credit score is similar to your grade point average in school, but for borrowing and paying back money. A person’s GPA (or grade point average) was a vital tool in determining what type of college you will be eligible for, and your credit score is a vital tool in determining what type of mortgage you will be eligible for to purchase your Ocean Edge condo. This credit score is then reported to the big three credit bureaus, Experian, TransUnion and Equifax who manage this information.
How Do You Fix Your Credit Score?
So you checked your credit score, and it is not high enough to get you the mortgage that you need for your dream condo at Ocean Edge. What should you do now? The first step is taking a look at your credit score. Are there cards or lines of credit still open that you have closed? Was a payment you made misreported as delinquent? If you spot a mistake on your credit report, take care of it right away. It can take time to disappear from your credit report, so the sooner the better. A mistake on your credit report will stay with you, so it is important that you nip it in the bud and fix it. For more information on how to improve your credit score, check out our blog “Clean Up Credit Score Before You Buy”
Set reminders in your phone to remind you of when your bills are due so that you do not miss a payment. A lot of companies allow you to set up automatic payments so the money is automatically deducted from your checking account every month. The trick is remembering to have the money in that checking account for your payment to be made on time. It can be tempting to sign up for store credit cards because many of them offer a discount on purchases when you are checking out. However, applying a line of credit impacts your credit score. When a credit company or car dealership runs your credit to see if you qualify for their store credit card or if you qualify for a car loan, they make a hard inquiry on your credit. This hard inquiry knocks down your credit score, so before you have your credit run ask yourself if it’s really worth it.
How Do I Monitor My Credit?
Websites and apps such as Credit Karma or certain credit cards offer you free credit scores that you can check daily without impacting your credit score. Although websites such as Credit Karma are reliable, they are sometimes based on two out of three of the big credit companies reports on you so it is not always your exact score. Websites like those give you an idea of where your credit score is at, but you can request your complete credit score to know exactly where you are on the credit scale. Monitoring your credit will prevent you from having to fix your credit score before you buy your Ocean Edge condo, you will be ahead of the game.
Fix Your Credit Score Before You Buy Your Ocean Edge Condo
There are so many factors that go into buying a home, and your credit is a major one. The better your credit score, the better your chances of getting the mortgage you need to buy your Ocean Edge condo. Before you start the home buying process, do yourself a favor by checking your credit score so you can fix your credit score before you buy your Ocean Edge condo. Knowing your score will give you the upper hand because then if you do need to fix your credit, you have the time because it won’t happen overnight!