12 Dec 2024
By noelkelman

The Differences Between Hard and Soft Credit Inquiries

Credit Scoring, ,
Credit inquiries, also known as credit pulls or checks, are a standard part of assessing creditworthiness. However, not all credit inquiries are the same. They fall into two main categories: hard and soft credit inquiries. Understanding the differences between these two types is crucial for managing your credit health and avoiding misconceptions. Below, we explore the distinctions between hard and soft credit inquiries to provide clarity on their purpose and impact. 1. Purpose and Usage Hard and soft credit inquiries serve different purposes. Soft Inquiries: These occur in situations like checking your own credit score, background checks by potential employers,…
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10 Dec 2024
By noelkelman

Will Refinancing Impact Your Credit?

Credit Scoring, ,
Refinancing a mortgage can provide significant financial benefits, such as lowering your interest rate or accessing home equity. However, it’s important to understand how the process may temporarily affect your credit score. Here’s an in-depth look at the potential short- and long-term effects of refinancing on your credit, along with tips for minimizing any negative impacts. What Does It Mean to Refinance a Mortgage? When you refinance, you replace your existing mortgage with a new loan. Homeowners refinance for a variety of reasons, including: Lowering their interest rate Changing the loan term (e.g., from 30 to 15 years or vice…
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08 Oct 2024
By noelkelman

Consolidate Credit Card Debt with a Cash-Out Refinance

Credit Scoring, ,
If you’re feeling overwhelmed by credit card debt, a cash-out refinance may be an effective way to manage it. This type of mortgage allows you to utilize your home’s equity to pay off high-interest credit cards, consolidating them into a single, lower-interest mortgage payment. How a Cash-Out Refinance Works A cash-out refinance lets you replace your current mortgage with a new one for more than what you owe. The difference is then given to you as cash, which you can use to pay off your high-interest debt. Here's how the process works: Apply for a Cash-Out Refinance: You start by…
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04 Oct 2024
By noelkelman

How to Get a Mortgage Without a Credit Score

Credit Scoring, ,
Getting a mortgage without a credit score may seem like a tough task, but it is possible. Many assume that a credit score is a must, but if you don’t have one, you can still pursue your dream of homeownership. Here’s how. What is a Credit Score? A credit score is a numerical value that shows how well you manage debt. The score is based on factors like your payment history, how long you’ve had credit, and how much credit you’re using. Higher credit scores typically mean better mortgage terms, including lower interest rates. Loans Without a Credit Score If…
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02 Oct 2024
By noelkelman

Steps to Take Now to Build Your Credit for a Home Purchase Next Year

Credit Scoring, ,
If you're thinking about buying a new home next year, there's one important factor to consider before you start browsing listings—your credit score. A strong credit score can make a huge difference in the interest rates you will qualify for and can also determine your mortgage approval. Starting the process of improving your credit now gives you a head start, putting you in a better position to achieve your homeownership goals when the time comes. Here are five steps to help you get started: 1. Check Your Credit Report Before anything else, it's essential to know where you stand. Request…
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06 Aug 2024
By noelkelman

Understanding Your FICO Score: Key to Better Home Loan Rates

Credit Scoring, ,
When you're looking to buy a home, one of the most important numbers you need to know is your FICO score. This three-digit number represents your creditworthiness and plays a crucial role in determining the terms of your home loan. Let's discuss what a FICO score is, how it's calculated, and why it matters for your home-buying journey. What is a FICO Score? A FICO score is a numerical representation of your creditworthiness, ranging from 300 to 850. It is calculated based on your credit report, which includes your payment history, amounts owed, length of credit history, new credit, and…
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17 Jul 2024
By noelkelman

Hard Inquiry vs. Soft Inquiry — What’s the Difference?

Credit Scoring, ,
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 “soft inquiries.” What is a Hard Inquiry? Hard inquiries occur when you…
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10 Jul 2024
By noelkelman

Preparing for a Mortgage? 5 Ways to Build Credit Without Credit a History

Credit Scoring, ,
Building a credit profile from scratch can be a daunting task, especially for those who have no credit history. These individuals, often referred to as having a "thin credit file," face challenges in securing loans, credit cards, or even mortgages. Interestingly, having no credit at all can sometimes be more problematic than having a poor credit history when applying for a mortgage. There are effective strategies to help those with thin credit files establish a robust credit profile. Here are five practical ways to get started: 1. Get a Secured Credit Card Secured credit cards are one of the quickest…
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