March 30th, 2015 9:40 AM by Jackie A. Graves, President
knows how important it is to have great credit when you're buying a house. But
keeping your credit good after you've purchased is just as critical. Letting
your score take a hit after you close escrow can negatively impact you in a few
easier than you think to get into trouble with credit cards once you become a
homeowner. One late or missed payment is all it takes to get your first ding.
if you don't have any credit cards when you buy your home, make your first
mortgage payment and watch your mailbox fill up with pre-approval offers. While
it might be tempting to get all those cards and charge them up with new
furniture and window coverings and TVs and appliances, it might be best to
wait. As a new homeowner, you don't yet know what your total monthly nut will
the utilities are way more than you expected. Perhaps your air conditioning
goes kaput the first time you turn it on in the spring or your handyman
discovers asbestos while scraping the cottage cheese ceilings in your living
room. What if rising values in your area means higher taxes for the next year?
Delaying some or all of those purchases until you know what you can easily
afford can help you stay in good financial shape.
rates drop after you've moved in or you didn't get the greatest rate to begin
with, refinancing might be your answer since it can save you money every month
and over the life of your loan. If your credit score has gone up since you
purchased, which often happens after a mortgage payment or two, you might be in
a good position to refinance. If your credit score has dropped since your
lender approval because you took out too much credit or were late on any of
your payments, you may not qualify, which would mean sticking with your
good reason to refinance is lower private mortgage insurance (PMI) rates for
those with a Federal Housing Administration (FHA) loan. The lower rates are
expected to save homeowners up to $900 per year, according to the U.S.
Department of Housing and Urban Development.
cable, and cell phones, oh my!
bump in your credit score post-mortgage can help you get a better rate when
buying a car, whereas a credit score in decline could mean not qualifying at
all. But even smaller purchases and necessary services can be affected by poor
phone companies run a credit check on you every time you sign up for a new
contract," said CNN Money. "The rationale is simple: Wireless
companies want to make sure you'll pay your bill. The company "has
revealed that 50% of its customers don't qualify for its top promotions."
like electric and gas as well as cable and satellite may not decline to service
your home, especially if they are the only provider in your area. But you may
have to pay a higher deposit if your credit is bad—something to consider if you
are planning to change to a different provider or plan.
Jaymi Naciri | To view the original article click here