Real estate is a flourishing business all across the word. And to access loans quickly, homebuyers need to be careful of their finances and credit. Sometimes the credit of a potential homebuyer can be low leading to a denial of a loan by the lender. Below you will find different ways through which homebuyers can improve their credit scores and qualify for loans.
Five cool way for homebuyers to improve credit scores.
1. Always pay loans on time
This is the most important thing. In fact, no lender will lend money to an individual who has repeated failed to repay loans on time. It shows that you are poor in financial management and lack discipline thus spoiling your impression on paper. Irrespective of whether it was deliberate or due to genuine reasons is inconsequential. If you have a repeated record of missing your equated monthly installment, your credit score will end being low.
2. Close all your unwanted savings accounts
Most people tend to ignore their unwanted savings account and leave them active. The truth of the matter is that savings account with less than your Minimum Average Balance start affecting your credit score so much. It is also advisable that once you finish repaying your loan, ask for a loan closure certificate. This is a good move that will see you credit score improve significantly.
3. Pay your dues on time
This is another vital tip on how to improve your credit score. Payments made on time and in full improve your score immensely. It carried almost 40 percent weigh on your credit score. So try not to miss your due dates for your monthly payments especially with banks.
4. Check your credit reports frequently
Credit reports are available for a small fee. These reports can be obtained from an official FICO site. You can pay online and get your credit report at least once per annum so that you can seek redress in case there is any mistake in your report.
5. Negotiate if you can’t pay on time
This is one of the most important tips on how to improve you score. When you know that you will not be able to pay your bills in advance. Negotiate with your bank. They can be willing to extend your facility period and reduce the EMI if they recognize a genuine and honest reason. This might hurt but you will create a good impression, and the bank will treat you to be an honest person.
There you have them, the five coolest ways that you can improve your credit score. Follow them you will get a home loan easily.