Bad credits scores can spell disaster for home loans

    If you are looking to buy a house, you will more than likely need a home loan.  In order to get one, you’ll need a good credit score, which is upwards of 700.  In order to get it, you need to guard against certain things.

    The Powell Group has some suggestions on how to help you keep your credit score up.

    Paying your credit cards on time will help your chances of getting a loan
    Paying your credit cards on time will help you secure a loan

    First and foremost, make sure you pay your credit card bills on time.  Nothing hurts your credit score more than a delinquent payment.  If you are having trouble paying, then talk to your credit card company.  If you don’t – and you are late – your score will plummet.  It’s that simple.

    Don’t make the mistake of getting another credit card if your first one is maxed out.  “Robbing Peter to pay Paul”  will also hurt your score.  In fact, new applications can cost you as much as five points.  Don’t hurt your score just to get a new card.  Besides, it’ll only put you in more debt, which will hurt your score even more.

    Make sure you are current on all your bills
    Make sure you are current on all your bills

    Credit card bills are not the only ones to look out for.  Medical debt and school loans need to be current.  In a nutshell, make sure you either pay off the bill or set up a payment plan.  The difference in these cases is that delinquent bills will be sent to collections agencies.  If that happens, your credit score will fall fast.

    The Powell Group encourages you to stay on top of your finances and be current with all of your bills.  Doing so will help your chances with a lender to secure a home loan. Our team members can suggest several ways to do this, and they can also put you in touch with the proper people.

    If you are moving to the Western Upstate of South Carolina, log on to our website and have a look at our beautiful homes.  We are sure you will find exactly what you are looking for.

    (Pictures used from Flickr and Pixabay)

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