Being “credit invisible” might sound like a superpower, however, in the world of finances it’s anything but. Your credit report and credit score — two factors that are generally considered important for getting a mortgage, credit card, and more — are based in large part on your history of managing credit. If you are considered “credit invisible,” you don’t have a history for the credit system to pull from. So then what happens? The good news is, it’s not the end of the world. We’ve compiled some helpful information and tips for establishing your credit and potentially accessing the financial products you are looking for. What Does it Mean to Be Credit Invisible? There are three primary credit reporting agenciesRead More →
Credit Invisible: What to Do If You Have No Credit
Can a Rapid Rescore Give Your Credit Score a Boost?
Small changes in your credit scores can make a big difference in the mortgage interest rate you end up paying. That’s why some lenders offer something called a “rapid rescore.” Find out how a rapid rescore works and what it could potentially do for you. Let’s Start with the Basics Before we dive into rapid rescoring, there are a few facts about credit that may be helpful to know. There are three primary Credit Reporting Agencies (CRAs) –– TransUnion, Equifax, and Experian. The CRAs receive information from lenders and creditors (also known as “data furnishers”) which they use to compile a credit report. Data furnishers are not required to report to all (or any) CRA, so the information they eachRead More →
What Credit Score Do You Need to Get a Mortgage? That Depends
When it comes to credit score requirements for landing a mortgage, there are a variety of factors at play — like the type of mortgage you’re applying for and your specific lender requirements. If you’re in the market for a mortgage, this information can help you understand the ballpark number you may want to shoot for. Types of Mortgages There are several different types of mortgages to choose from, depending on where you want to live and what your financial situation is, and each comes with its own set of qualifications. FHA Loans FHA loans are insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). These types of loans tendRead More →
APR: What is it and How is it Calculated?
If you’ve ever taken out a loan or opened a credit card, you’ve likely seen the term Annual Percentage Rate or APR. While this might seem like a fancy way of saying “interest rate,” they aren’t always the same. In the credit context, an interest rate is the amount a financial institution charges to use the funds they are offering you. (It’s also the amount you might receive for keeping your money in a savings account or Certificate of Deposit (CD), but we’ll just be looking at it from a lending perspective.) APR, on the other hand, can include both the interest rate and any additional fees associated with borrowing from that lender that are financed with the loan. LikeRead More →
Interest Rates: Here’s How They Work
Shopping around for a loan or credit card makes one thing very clear: Borrowing money isn’t free. While the types of fees can vary, interest is generally a given. In simple terms, interest is the amount you pay to a bank or lender to use the funds they are extending to you. On the flip side, it’s also what you might be paid for putting your money into an interest-bearing savings account or Certificate of Deposit (CD). Here are a few facts you should know. Types of Interest Not all interest rates are calculated the same way or applied to the same type of financial products. Let’s take a look at a few of them. Simple Interest As the nameRead More →
Credit Limits: Here’s What You Need to Know
Simply put, a credit limit is the maximum amount you can spend on a credit card. When you make a purchase, that amount is deducted from your credit limit and the remainder is the current amount of credit you have access to. When you make a payment, and once that payment is credited to your account, you have access to more funds – your credit limit minus your new balance. You can usually find your credit limit on any statement you receive from your credit card company, or by logging into your account online. Credit Limits and Covid-19 If you’ve recently noticed a change in the available credit on your credit card, there might be an easy explanation. While theRead More →