PHOTO FROM 123RF
Let’s Clean up your credit score
before buying! By Jenny Gonzalez
A
credit score developed by Fair Isaac Corporation is a model that shows the customer’s creditworthiness. It is a number between 300 and 850. In buying homes and other mega purchases requiring one to take a loan, it is important to clear credit scores first. It is important to do so because it will lead potential lenders to trust the borrower and benefit from lower interest rates in the long run. Credit scores between 800-850 mean excellent, while 300 -579 mean poor credit scores. The numerical analysis is also crucial as it determines the amount of deposit needed to take a loan from creditors. It is easy for buyers to fall in love with the idea of buying a home, but if their credit score is bad, that will remain a dream.
Credit score has significant effects when it comes to getting home. Research indicates that those planning well for their home buying processes are less likely to run into financial debt later. It is crucial to check on credit reports, which is done by revising them after a certain period. Credit reports are freely downloaded or can also be gotten via phone. Equifax, Experian, and Transunion are the three main companies that give credit reports, but each company has different reports. Once one gets their report, checking for mistakes is vital. Errors could result from a misspelling of the names or wrong personal data. Fraud is another reason one needs to check on a credit report because there are; possibilities of JULY 2022 | 69
