Lenders utilize these scores to decide the level of risk that will be involved in the lending of money to applicants. Lower credit scores mean greater risk, and therefore lenders will charge greater up-front charges and also higher rates of interest.
Your mortgage is the most expensive portion of the process of buying a home. It can only be your best interest to maintain and preserve your credit score at the highest level possible.
Keep yourself aware of your credit score on a regular basis. Know your score before applying for nay loans to avoid surprises. Watch your report closely, as errors on individual reports are more common than you may think.
Many factors can adversely affect your credit score. Here are some examples: instances of mistaken identity, older, irrelevant information, and always be aware of the threat of identity theft.
Be aware that it can take up to 45 days to correct errors that are found on your credit report. It is recommended to choose a specific date to check your report annually; your birthday for example.
Consumers are entitled to receive a free credit report once per year from each of the three major credit tracking companies.
To obtain specific instructions go to
www.annualcreditreport.com .
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