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2013-06-14 17:24:08
Building and repairing credit
Cache Valley Realty

   Recently a radio ad came on one of our local Cache Valley radio stations advertising record low interest rates on home loans. Naturally for someone that is interested in buying a home here in Logan, Utah, claims like these could spark quite a few questions and generate some curiosity as to whether or not these home loans are too good to be true. Well, many times these 'record low interest rates' do not really exist but at times they do but are conditional upon many factors and are given to only a few individuals at a time. One of these factors that we are going to touch on today is 'Credit'.

   Credit itself is quite a simple concept that should be understood in many aspects of life but especially when it comes to the real estate market. Credit is determined by a set of criteria that indicates someone's financial trustworthiness and is often represented with a number (The higher the number, the better their credit rating will be). If a lender sees that a person's credit score is good, they are vey likely to give that person a lower interest rate and approve them for a better home loan (even some of those with 'record low interest rates').

   So if your credit rating isn't where you would like it to be because you have not had enough time to build your credit or because some past financial decisions have damaged your credit rating, here are some suggestions on how you can get your credit to where it should be.

 
1. Check your credit report for problems.

            There are many places that you can go to online to receive a free yearly credit report. This might be a good way to help you identify any potential problems with your credit rating. Also if something influencing your credit score by mistake, you can dispute the issue and fix it through the US Credit Bureau.

2. Practice good money management techniques.

            By creating a budget to make sure that you have enough money to pay off bills as well as have some extra money that can be used in an emergency, you can keep yourself from relying too heavily on your credit and spending too much.

3. Make sure you can afford what you buy.

            One of the best ways to build credit is to make sure that you have enough money to pay off whatever it is you are buying before you purchase that item. This will prevent your debts from stacking up and quickly becoming too large to pay off.

4. Make timely payments.

            If you were to put yourself in a lender's shoes, would you be more likely to loan money to somebody who always paid you back on time or somebody that never seems to be able to pay you back in full and is usually late when making payments? Hopefully the answer to that question is clear but sometimes making timely payments is easier said than done. Proper budgeting will make it possible to make payments on time and if needed, setting reminders on your phone to pay a bill by a certain date can help you remember to pay on time.

5. Do not max out your credit line.

            Maxing out your line of credit even if you are promptly paying it off in full will damage your credit rating. Many banks and financial experts recommend not using more than 50% of your available line of credit at one point in time.

6. Do not open too many credit accounts.

            Even though we would all love to have all of the perks promised by opening a new line of credit, it is probably not a good idea. Each of these lines of credit affects our credit score and if we have too many of them or open too many in a short amount of time, our credit score is likely to decrease.

7. Give it time.

            As with most things, time is one of the most important elements when repairing bad credit or building credit. As you continue to exercise good spending habits and pay off your debt in a timely manner, bad credit history will slowly be replaced and before long you will find yourself in a position to get the best home loan rates.

 

At Home Realty Logan

 
Blog Archive
2016-03-03 19:58:43
Cache Valley Real Estate Statistics (February)

2015-12-07 13:00:20
Cache Valley Real Estate Statistics (November)

2015-11-02 10:57:54
Cache Valley Real Estate Statistics (October)

2015-09-18 13:28:53
Cache Valley Real Estate Statistics (August)

2015-08-11 11:46:20
Cache Valley Real Estate Statistics (July)

2015-07-01 13:47:45
Cache Valley Real Estate Statistics (June)

2015-05-14 11:03:28
Cache Valley Real Estate Statistics (April)

2015-04-03 13:21:01
Cache Valley Real Estate Statistics (March)

2015-03-06 11:37:03
Cache Valley Real Estate Statistics (February)

2015-02-12 11:29:47
Cache Valley Real Estate Statistics (January)

2015-01-21 16:41:09
Cache Valley Real Estate Statistics (December)

2014-12-05 15:41:31
Cache Valley Real Estate Statistics (November)

2014-10-09 13:12:34
Cache Valley Real Estate Statistics (September)

2014-09-09 06:03:15
Cache Valley Real Estate Statistics (August)

2014-08-05 15:45:47
Cache Valley Real Estate Statistics (July)

2014-07-07 14:54:38
Cache Valley Real Estate Statistics (June)

2014-06-17 15:29:03
Cache Valley Real Estate Statistics (May)

2013-12-17 06:47:52
Cache Valley Real Estate Statistics (November)

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Cache County Real Estate Statistics (August)

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