Knowing the difference between a hard inquiry vs soft inquiry can help you maintain a good credit score. Here's what you need to know. Most people know that your credit score can drop if you miss a payment or have a new collection filed against you. But how about when you apply for new credit? Yes, a credit application will trigger a “hard inquiry” on your report, which can have an impact on your credit score. Here’s what to know about hard inquiries, and how they compare with … [Read more...]
Understanding Debt-to-Income Ratio: A Key Factor in Mortgage Approval
When it comes to securing a mortgage for your dream home, there's a crucial number that can make or break your application: your debt-to-income ratio (DTI). Understanding and managing your DTI is essential for navigating the mortgage approval process smoothly. Let's delve into what DTI is, why it matters, and how you can calculate it. What is Debt-to-Income Ratio (DTI)? Your debt-to-income ratio is a financial metric that compares your monthly debt payments to your gross monthly income. Lenders … [Read more...]
Considering a New Home Next Year? Start Now and Get a Jump on Improving Your Credit Score
With the new year right around the corner, that leaves you with precious little time to get your finances in order. Let's explore a few tips that will help you get a jump on improving your credit score before the end of the year. Grab A Fresh Copy The first step is to order a fresh copy of your credit report from one of the major agencies. The Fair Credit Reporting Act allows you to access a free copy of your credit report once every 12 months. So, if you have not ordered a copy recently, it is … [Read more...]
A Complete Guide: What Is A Credit Freeze And Why Is This Helpful?
Due to recent changes in federal regulations, consumers are now allowed to freeze their credit free of charge. Prior to changes in these regulations, credit bureaus would charge consumers for freezing their credit. What does this mean, and why might someone want to do this? Freezing Credit Restricts Access To Confidential Information There are certain situations where consumers may need to have access to their credit reports. For example, they may be applying for a home loan or a car loan. There … [Read more...]
