Mortgages have been a hot topic of conversation lately as rates continue to track lower and lower. People continue to refinance their homes at unprecedented rates and new home sales are also starting to pick up. People do not want to miss the golden opportunity which comes along with historically low rates. The only problem that many have ran into in the last few years are mortgage are tougher to get then have been in the past. Mortgage lenders have require more down payment longer job times, and importantly better credit scores.
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How do credit reports work?
Credit reports keep track of a person’s credit history. All of your current car loans, credit and charge accounts, and home loans report to the three credit repositories which then are able to put these histories into a report. This report shows your payment history even if you are late on your payments. These reports will report that you are not as long as pay your payment within 30 days of the due date. Your credit report will also show if you have had accounts turn into collection companies as the result of non-payment, car repossessions, foreclosures, and bankruptcies. Typically this information stays on your credit report for at least 7 years. After that, the old credit accounts start falling off your credit report.
Having a Good Credit Score is Important
So in closing, make sure that you are responsible with your payment. Make sure that you are prompt with your payments and do not overstretch yourself financially so you can always pay your payments on time. If you don’t you could end up spending thousands of dollars extra over the life of your home mortgage. Call the experts at Riverbank Finance Finance today 800-555-2098.