10 Things Will Stop Your Home Loan
10 Things Will Stop Your Home Loan

Doing these will stop your home loan:

In the United States most citizens base their wealth on their ability to pay off their debts. Banks when offering a mortgage to a home buyer will want to know that the home buyers will pay off the money they borrow. The banks will automatically run a credit check on who wants to borrow money. During this process the bank will research 3 different credit reporting agencies to decide what the FICO scores are. List below are 10 things that will impact your credit score. The more of these 10 things you have control over the greater the chances of the bank lending you the money to buy your new home.   Everything you do with your finances has an impact on your credit score. Some things have a positive effect and others have a negative effect.

Here are the top

10 things you do that will have a negative effect on your credit score.


  1. Applying for an account at a Credit Union as it may cause a “hard inquiry” into your credit.
  2. Using a “business credit card” for your business expenses, which you have personally guaranteed them. Instead, use your own credit card and cost it out.
  3. When you dispute a credit card charge it remains as a credit charge until resolved.
  4. Closing out “old” credit cards can hurt. The credit cards you have had the longest have a positive effect on your credit and kept over newly acquired credit cards. Longer is always better with credit.
  5. Renting a car with a debit card will cause the car rental company to run a credit check.
  6. Not paying your parking ticket will hurt your credit because they will end up at a collection agency.
  7. When you get a new cell phone the company runs a credit check on you.
  8. Asking your credit card company to increase your credit limit is a new credit request and initiates a credit check. If they give you an increase without you asking that is ok.
  9. Not using your credit card and allowing them to sit in your wallet or purse. It affects your “credit utilization” ratio and will lower your credit score.
  10. Using the finance plans offered by stores for a major purchase like a refrigerator should only be used as a last resort.

Now what should I do?

protect your credit score
10 Things Will Stop Your Home Loan

One of the key components of buying a home is good credit. Avoiding things that will have a negative effect on your credit score is important. Use the previous items to insure your success in buy a new home.   If Cliff Keith and Team can help be of help to you please feel free to contact us today. We are available via text/phone call; 650-346-7366, or Voicemail: 650-597-1821, and finally email; cliff@sfbayhomes.com


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