You know how important your credit score is when you’re preparing to purchase a home in the Edmond and Northern Oklahoma City area – but are you doomed if you slip and forget to make a monthly payment … perhaps not. Not everything dings your credit.
Don’t make a habit of not paying or slow paying small vendors, but there are some who don’t report to the credit bureaus, so slow paying them will not hurt your credit score. No report – no ding. NOW, if you don’t pay and they send you to collections, expect a dent instead of a ding.
Late payment of your county property taxes. Oh, you’ll get assessed a penalty, but the late payment is not reported to the credit bureaus. HOWEVER, if you don’t pay your taxes and the taxes become a lien on your property, again – expect a dent instead of a ding.
Not carrying a balance on your crediti card. You don’t HAVE to carry a balance on your credit cards to show you have good credit. In fact, if you pay them off monthly, you don’t pay interest and you still show you are responsible in paying off your debt. HOWEVER, if you carry extremely high balances, expect a dent instead of a ding.
Not paying your rent. Unless you have a good excuse for paying your rent, you better keep your rent payments up. If you are trying to get a loan, it’s not the credit score you’ll need to worry about – it’s the landlord giving you a bad rent payment history. Non-rent payment will not show up on your credit unless you are taken to court and it becomes a judgment against you.
A change to your assets or income will not change your credit score. The credit bureaus won’t even know if you lost your job because nothing is reported to them. What IS reported is your nonpayments should you not be pay once you have lost your job. The bureaus won’t even care if you receive unemployment compensation. All they care about is getting paid.
Keep your monthly payments up – stay employed – pay your rent and go apply for that mortgage. There should be nothing to worry about! Your credit should be top notch if you have done all these things!!
However, to make sure – contact us! We can help!!