Understand Your Credit
Home-Equity-Loans-123.com
Considering the purchase of a new home? You better consider your
credit history...money lenders do!
The degree to which you have dealt with your bills in the past is
of vital importance to lenders. The positive side is that you have
access to this information just like they do!
Your past credit is monitored by three separate and distinct
companies also known as credit reporting agencies. These
companies are: Equifax, TransUnion and
Experian. You can place an order to receive your credit report by phone, and
have it charged to a credit card. It normally takes a week to
receive it. The quicker way is to place an order online and have
your credit report in a matter of seconds.
It's smart to get a copy of all three
reports, being that even if a mistake is found on at least one of
these reports, your chances of getting the home equity loan you want
can be greatly reduced. Your credit report reveals any credit
that has given to you in the previous seven years. The report
lists your highest balance at a given time and whatever your
balance, if any, is to date. Other information includes the number
of punctual and late payments you made on your account. Tardy
payments are categorized by the degree of their tardiness.. For
instance, a one time credit card payment over 30 days late is not
deemed very serious a transgression. But if payments are over 60 days late
on at least four different occasions, it is considered a more
serious problem. Payments over 120 days late at least two times and over 180 days late one time
can be considered a costly problem. That problem is going to greatly
affect your chances of getting approved for large sums of
money, like home equity loans.
The first thing to do is look into
your credit report and fix any discrepancies. Whether or not you had
negative credit experiences in the past, you should remember two
important things.
First of all, negative credit information
only stays on your credit report for seven years. When seven
years is up, all previous information is permanently removed.
(Except if you have claimed bankruptcy in the past - This stays on
your report for ten years) Regardless, you have more than one chance
to start over!
Second of all, your current and most
recent credit transactions are of primary interest to money lenders.
What you have done in the distant past does not carry as much weight
as what you have done lately. Even if you declared bankruptcy within
the past two years, if you have managed good credit since then, you
still have a chance of getting approved for a home equity loan.
One of the finest advances in the world of
money lending has been
risk-based pricing, which is the practice of making available home
equity loans to borrowers based on their credit history. So,
even if your credit history is below par, you are still likely to
get approved - just with a higher home equity rate.
Home Equity Loan Refinancing Guide
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