Credit score is the magical and sometimes misunderstood number between 300 and 850 that represents the creditworthiness of an individual. The credit score will rise or decrease based on the number of active accounts, diversity of credit lines, the pay on time of your bills, balance of credit used and other information relevant to the report such as collection accounts, foreclosures, bankruptcies and even child support.
There are many reasons why your credit score should be GOOD, but here are the 3 most important ones when you are looking to buy a house:
- Will show lenders if you are subject to credit or not (the highest your credit score, more chances you get to be pre-approved)
- Will determine the interest rate you will get (Higher credit score, lower the interest rate)
- Will make you save money on the activation of utilities when you move to your own house (High credit score can waive deposits)
The minimum credit score that will allow you to qualify for a mortgage is 580+, it will vary depending on the type of mortgage and/or program.
If you would like more info about how to qualify to buy a house, give me a call at 813 446 2003
Clarisa Moody
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