With a shaky credit history, you’ll probably avoid making new credit cards or taking loan applications because you fear you’ll be turned down. You’ve probably heard you need to have good credit, but do you know why? Good credit isn’t just about getting a credit card – it affects so much more than that. Your credit history can affect everything from your insurance rates to the type of house you can rent or buy to whether or not you land your dream job.
Basically, your credit history is important because lenders, insurers, employers, and others may use it to assess how you manage financial responsibilities. Read the article at our site where we pinpointif you have a negative credit history, you could be without insurance or utilities, unemployed and can be even homeless. Now, do you understand how important it is to have a positive credit history? Since it’s so important, please remember the following about the importance of credit history:
- The credit score determines your ability to obtain credit; you’ll need a good credit score in order to qualify for credit cards giving attractive offers.
- While the history is searched, they’ll be able to find the interest rate that you’re capable of repaying. Getting an insight of the responsibility you can handle.
FHA loans are the best option to consider if you have a par credit score. If you have little or no credit history, it can be comforting to know that the FHA approval requirements tend to be less stringent than those for conventional loans. At this time, it only takes a 500-credit score to qualify for a loan. Another advantage of taking an FHA loan is that unlike conventional mortgages which often require down payments of 5-10% of the purchase price of the home; we can get FHA loans for only 3.5% down.If your credit score is not above average, you may run into a lot of big numbers while interest rate shopping. Since FHA rates are the same regardless of credit and are generally competitive, you could end up saving a lot on interest payments with an FHA loan if your credit is lacking.
Another one of the easiest ways of getting your loan approved is to present a larger down payment. By doing so, it shows your enhanced borrowing capacity, increasing your borrowing limits. Added to the advantage is if you’re paying a larger sum as a down payment, interest rates will be limited.
Read the article in full at our site, get more vision on how to approach the idea of getting a new home with a par credit score.