Finance & Loans

Don’t repeat these mistakes

Don’t repeat these mistakes that others have done. Whether it is an impulse buying decision or calculated and much thought out decision to buy a home, we all make mistakes that we later regret. They can impact your financial health and haunt you for years.

Not clearly understanding your credit profile is one of the biggest mistakes we all make. The biggest item in your credit is your credit score that is called FICO score. What is considered as higher credit score could result in lower interest rate on your new mortgage or a credit card. If you are in the market for a home loan or to get a new credit card you need to master your credit before you contact a lender or card issuer. Each one looks for a different benchmark when they consider extending credit or approving a loan to you. Often time your credit report comes with your FICO score or you may have to obtain the report from one of three major credit bureaus. Experts advise that you should review your credit report more often for mistakes and promptly take action to correct them. If you are in the market for a FHA loan to buy a home, poor credit as well as lower credit score could result in paying for expensive mortgage insurance.