California Mortgage Rates and Your Credit Score
A lot of people think that what they do now financially now won’t have an impact on their future. This isn’t true, however. Your credit score and history affects how much you pay for things. If you have bad credit, you’ll be paying more for your home, car and other large purchases until you can turn it around and improve your credit rating.
Your Credit Score and Home Loans
Your credit report and credit score will greatly affect your ability to get a home loan in California as well as get a low mortgage rate. With so many changes in the mortgage industry, banks and mortgage companies have a more difficult time getting money or credit to help borrowers with low credit scores.
What is a Low Credit Score?
A low credit score is generally lower than 600. There are a few factors that contribute to low credit, including late payments, outstanding balances and credit history.
How to Improve your Credit Score
Because if the impact low credit will have on your mortgage, you’ll want to get a copy of your credit report quickly and see where you can improve your score. You can do this yourself, or look to credit improvement companies who will legally help you remove old accounts, mistakes, and other problems off your credit report and help you increase your credit scores.