If you’re considering to buy homes for sales in Ajax or any commercial property Whitby has got your attention, remember that your credit score can change the whole game for you. The approval of your home loan is entirely based on the standing of your credit score. Mediocre or bad credit will get your loan rejected immediately or also apply on the interest rate of your loan. Every ender keenly analyzes your credit score as soon as your application lands on their table.
Lenders have set some standard markings for approving your home loan based on your credit score. In case, your score is way too low then what they need, then they will look into your monthly income, and a monthly ratio of your debt standing and expenses. Basically, they don’t want to invest in something that is going to get them a loss in return. However, if you’re holding a nice amount of cash, then buying a property will not be an issue for you. Therefore, let us tell you how to improve your credit score through these 5 tips.
Always Keep Your Bill Updated
Your bills are a very important step to maintain a healthy credit score. Never be late to submit your payment of any bill. Payment on time will boost your credit score. Make sure that you don’t do any new credit activity before you’re done paying the previous debt.
Missed Payments Should Be Negotiated
We are humans, and make errors. Sometimes, if you had to miss any monthly payment, quickly go ahead and negotiate on its due date, or how this can be resolved before the original creditor will do a credit reporting on your account. Always seek settlement plans within a short timeframe to make the debt stay at bay.
Check Account Statements And Dispute Errors
Always, and we stress about it, ALWAYS – read each and every account statement carefully. Check if something was over-charged or any amount that was not used by you is reflecting on the statement. If any errors or discrepancies are found, dispute the statement immediately. Send a written dispute as well, and keep a copy of it with you.
Set Up Payment Reminders – These Are Helpful
We all have busy schedules, and remembering the due date of any payment is not possible. So, the best option is to set up payment reminders by phone, email or calendars. You can set up these reminder a day or two before the due date to ensure timely transfer of funds. This will keep you on track with each and every payment, and allow you a good grace period to ensure delivery on time as well.
Track Your Credit Report
This is an exceptionally great way of staying updated with your debts and credit score. You’ll have a first-hand report as to how you can maintain your good credit history in every manner. Further, make sure that you don’t mess up with over-due payments and monthly installments. Remember, as long as you stay good with your expenses and manage things wisely, getting a home loan would be easy, but, if you mess up or drop your credit score – the dream house may just become a dream.