Low credit score affect your purchase

Discussion in 'Growing and Managing a Business' started by perfectionj, Mar 15, 2012.

  1. perfectionj

    perfectionj
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    Can low credit score affect your purchase of a home?
     
  2. band

    band
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    During school time exam result reflect how good of our academic, its affect university application. Credit score is after university report, it show our financial status, bank relied it to make judgement for loan approval.
     
  3. SandraE

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    Absolutely. After graduating from college I have been trying to build my credit. Because I did not have a high credit score I have gotten credit cards and have begun to build my credit. One of my credit cards is only used for gas. This helps me keep track of my expenses. I think that a few credit cards being used in circulation can help improve credit rather quickly.
     
  4. creditreport

    creditreport
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    Yes lenders review your credit score before approving your home loan to find your credibility. A low credit score can make your loan disapproved or approved with high interest rates. You can go to Freecreditscore.com to get your free credit score.
     
  5. Casey

    Casey
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    I think you already know the answer to that. Low credit score has a big influence on your future mortgages/credit card purchases etc
     
  6. Navida

    Navida
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    Obviously low credit score affect your purchase, as any lender before giving any loan will see your credit record and if he find it as bad record he will definitely react on that. You should maintain your credit record good for future correspondence.
     
  7. printingray

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    The credit score is not only the factor when you apply for a loan but its very important. You will have a less access to new credit if you have a low score. You might be denied for a new credit card, mortgages etc because your score does not fit to the profiles of one who is financially responsible. Your credit score can be increased dramatically if you leave those things which pilot you towards bad credit.
     
  8. Business Attorney

    Business Attorney
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    A low credit score definitely affects your ability to purchase a home. For one thing, your credit score can be so bad that you can't get a loan at all. Second, even if you qualify for a loan, your bad credit score may increase the interest rate you have to pay, which means you will have to buy a less expensive house to keep your payments in line.

    The are ways to buy a home with bad credit but the best idea is to keep a high credit score in the first place.

    A higher credit score will always help both your ability to get a loan as well as the interest rate you pay on the loan.
     
  9. eKindom

    eKindom
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    yeah, they would not take risk to approve your home loan.
     
  10. kimipatel

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    Will affect on your purchase.. Low credit score like you will face problem on every stage of life... No one give you loan.. For any reason you want loan... (Car loan, personal loan, home loan).. No one can deal with you with low credit score....You should maintain your credit record good for future correspondence........
     
  11. kailamilos

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    Yes, unless you buy your house on a cash basis. However, if you will buy a house by borrowing from lending institution, you need to have good credit. Your lender will assess your ability to pay the amount you want to borrow on your credit score. You will have a hard time finding a lender who will be willing to lend you the amount you need if your credit is low.
     

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