 |
| Your credit report will be instrumental in securing your home loan |
When you are saving up for a big purchase like a car or a home, it is important to keep the goal in mind when making everyday purchases. If you can’t keep your self control when it comes to buying, your credit report will show. Then, you will end up paying for it with a higher interest rate. The Equifax Finance Blog explains how your credit report tells on you in the article, “Are You Receiving the Best Interest Rates on Your Loans?”
Your credit report keeps track of your financial habits, and it forms the score which determines your interest rates. If you borrow too much, have too many accounts or check your score too often, the report shows and lowers your score. Thankfully, the financial institutions that check your credit score for issuing you a loan now have to inform you when you don’t qualify for the best rate.
This information gives you a chance to change things before agreeing to the loan. The information comes in the form of either the Risk-Based Pricing Notice or the Credit Score Disclosure Notice. These notices can serve as a wake-up call to fix your wicked financial ways, or they can help you find errors in your report. Either way, these give you a measure of information and protection. Double checking before you sign on a long-term financial agreement can help you save money over the life of the loan.
For more personal financial advice, read the informative articles on the Equifax Finance Blog.
No comments:
Post a Comment