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Credit Questions

Published On: July 27, 2010


Here at Century 21 McDaniel & Associates your REO, Bank Owned, Foreclosure and Short Sale experts in the Hemet/San Jacinto Valley we often come across questions concerning consumers damaged credit and what can they do to fix it? Even with a bad credit can I still take out a mortgage on a house?  What makes  my credit so important when it comes to buying a house?  Well here at Century 21 McDaniel we really want to help find that Hemet/San Jacinto home of your dreams so we've taken it upon ourselves to answer some of those questions for you through a series of blogs over the next couple of months.

 

Did you know that by mid 2008 lenders were approving fewer than 1 out of 4 applications from prospective buyers with bad credit.  A year earlier lenders were approving 2 out 3 applications with those same scores.

 

If your credit score is high enough you qualify for the lenders top rates and loans.  Lenders will be fighting for your business. On the other hand if your score is low or nonexistent you will enter a no-man's land where mainstream credit is all but impossible to come by.  If you do find anyone willing to loan you money you can expect to be hit with a high rate.  Even with a relatively bad or mediocre credit score it could cost you thousands of dollars over a lifetime.



Sometimes all it takes is a single missed payment to knock more than 100 points off of your credit score and put you in a lenders high-risk catergory.  This applies even more if you have already have a high credit score.



Paying on time, above the minimum due on credit cards will help to improve credit scores.  This causes creditors to offer more cards at better rates allowing you to spread your balance instead of maxing out cards.

 

Sincerely,

 

Century 21 McDaniel & Associate

Hemet/San Jacinto's REO, Bank Owned, Foreclosure and Short Sale Experts