Credit Analysis Service

Are you looking into purchasing a home and are concerned that your credit may not be high enough? We can help come up with the solutions that may be able to improve your credit score and get you into the home of your dreams.

Credit Analysis Service

Life happens. If there have been extenuating circumstances that have impacted your credit score, there may be simple solutions to help get your credit eligible for a mortgage. 

To pay or not to Pay...That is the question!

When it comes to your credit scores, paying the right account or the wrong account can make a massive difference in your credit scores. One would assume when paying off bad debts on your credit report, the credit scores would always increase. However that is not always correct. 

This is despite the popular belief that having a $0 balance on your collection accounts must be better than owing money. The reason why your scores generally decrease when a payment is made is because by making a payment you reactivate the account causing it to report as new again. This is shown as the DLA on a credit report. This DLA or Date of Last Activity represents the weight of the account AND the seven year statute until the item will fall off naturally. 

Make sure to check before you start paying off old collections if you are wanting to get a mortgage loan so not to lower your score and impact your interest rate!

Do you have too much credit or too little credit?

Do you have multiple credit cards or have your maxed out your credit limits? If so, this could be hurting your credit score. If you don’t have any credit cards, this could decrease your score because it’s seen as not having any “revolving” credit. 

The credit bureaus determine your score based on many factors, including the amount of debt and the type of debt. If someone has limited or no revolving credit history, their score typically is lower.

While this can seem overwhelming with how everything is calculated, we can help come up with solutions to overcome these obstacles. Get in touch with us and let’s chat! We can help make sense of all the nonsense of your credit score and help put you in a position to acquire the mortgage you desire.

How Do Student Loans Affect Your Credit Score?

If you do not pay your student loans as agreed they will show up on your credit report as collection accounts and will decrease your credit score. If you are delinquent on your student loans you will not qualify for many types of mortgage loans. Keep your student loans on a current repayment schedule to ensure mortgage loan approval on your new home!!!

Sometimes we find ourselves in a situation that is not favorable to our desire to become homeowners. We have a background in financial services and the knowledge to assist you with overcoming these obstacles. Click below and let’s begin the process.