Wondering Why Your Credit Score Is So Low? Ask a Mortgage Broker
After months of trying to exercise financial responsibility, you decide to check on your credit score only to discover that it is surprisingly low. Your credit score is a result of many things, and so it might be hard to pinpoint the exact reason for the drop. However, here are few things to consider that may indicate why your credit score is so low.
Your Credit Card
As a rule of thumb, your credit card balance should not be more than two-thirds of its limit. If your credit card is above 65%, this can lower your score and send a bad signal to mortgage lenders with regards to your spending habits.
The age of your credit card accounts has an effect on your credit score according to many credit scoring models. If you have shown responsible use of credit, the best thing is to pay off the credit card and leave it open to retain the positive history.
Loan, Mortgage & New Credit Card Applications
While it is always good to look out for good deals, too many credit-line inquiries might hurt your credit score. This is true of department store purchases, car loans, and mortgages. Lenders and Mortgage Brokers may interpret this as overspending and/or credit-seeking behaviour.
Credit Report Inaccuracies
One in every five consumers reports have errors on one of their credit reports. So it is important to monitor your credit report and dispute any inaccuracies immediately. Ask a Mortgage Broker why for an opinion on why your credit score is low.
Although getting Mortgages with Bad Credit is an uphill battle, it is possible and doable, typically with a larger down payment. A bad credit mortgage broker should be your first stop. Contact Dominion Lending Centers for more info - we have knowledgeable and experienced Mortgage Brokers specializing in bad Credit mortgages.
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