Truth:
Little experience with credit can make it hard to get approved for a mortgage Lenders will look at credit history first before to deciding if an individual will be approved for a mortgage. In essence an individual looking into purchasing a home should have open and active credit accounts. These credit accounts can include credit cards; line of credit, car payment CD’s etc. make sure at least the minimum balance is paid on time monthly.
Truth:
Some creditors only report to one credit bureauYes that is absolutely true that is one of the reason there maybe a different score with each credit bureau. Also, that is why it is very important to review your credit report annually
Myth:
Paying off your loans early hurts your credit report. When you pay off a loan, your credit history is updated to reflect that and, because it's positive, typically stays on your credit report for 10 years,. (Negative information, such as a delinquency, only stays on your report for 7 years.) I advised a few clients if they paid a loan off try obtain at least a secured credit card to maintain at least 3 open revolving credit accounts.
Myth:
Your credit accounts need to be in your name only to strengthen your history. You can build up your credit history with your parents' help if they are willing to share a credit card with you, for example, or add you a an authorized user onto their accounts. "That's a good starting point.
Ainsley Daux
Home Run Real Estate inc
(813)546-1954
