Financial IQ October 09 2018

What’s Scarier Than Bad Credit? No Credit!

Many may pride themselves on having zero debt, but is it really the best for their financial future? Not as much as you may think. Being “credit invisible,” or having little to no credit, can make large purchases and future milestones way more challenging to achieve. It's best to think of your credit score as an adult report card. It is a way for lenders to predict how likely you are to pay your loan back. While bad credit means you have a credit history with some significant blemishes, no credit means you don’t have a record at all – which can often be just as bad.

Even with a reliable income, with no credit history, you will be seen as a risk because you don’t have a track record a lender can refer to. A lack of credit can result in:

  • Paying higher utility deposits
  • Higher interest rates on loans
  • Trouble renting an apartment or purchasing a home​​

 

4 healthy credit habits

 

The good news is, having no credit tends to be easier to correct than having bad credit. You get to begin with a clean slate! Here are a few ways you can start building your credit history:

  • Apply for a secured credit card
  • Keep your purchases small and always pay your bill on time
  • Accumulate a consistent payment history

 

Staying off the credit radar may seem like the safest option, but it’s not always in your best interest. Your credit report reflects your ability to manage money, and more importantly if you can pay back any that has been loaned to you. In a lot of cases, credit isn’t an option – it’s a necessity for some major milestones, like buying a car or a home. 

Need help with your credit?

Visit HBSG Today!

By Meagan Rochard  

 

Sources:

onmyway.wf.com

nerdwallet.com

July 19 2019

Benefit of Downsizing: Less Maintenance

If you're thinking of downsizing your home, less maintenance could bring you big benefits.

Read More

July 11 2019

Family, Friends, & Fulfilling the Dream of Homeownership

The prospect of coming up with a down payment for a home can feel downright scary, but luckily there are plenty of options out...

Read More

June 25 2019

The Modern Digital Mortgage Application

Technology has changed the way we live our lives. The way we connect, stay in touch, travel, and shop. And now it’s...

Read More

June 17 2019

Looking for a mortgage with flexibility?

Qualifying for a mortgage is now easier than ever before! If you have less-than-perfect credit or are carrying some higher debt,...

Read More

June 11 2019

Mortgage Rates are Trending Downward

Mortgage rates are constantly changing, but they have remained low for quite some time now. If you’re in the market...

Read More

May 31 2019

What is Escrow?

When you’re buying a home, you’ll hear the word escrow multiple times throughout the process! The meaning varies...

Read More

April 18 2019

Eagle Home Mortgage's Homebuyer Solutions Group

If you’re ready to buy a home, but are unable to qualify due to credit challenges, our Homebuyer Solutions Group...

Read More

March 27 2019

Interest rates have dropped!

Get Your Home Equity Working for YOU and Refinance Today 

Read More

March 25 2019

5 Steps to Kickstart Your Mortgage Refinance

Ready to refinance your home, but don’t know where to start? Here are some necessary steps to get you started to possibly...

Read More

12345Last

Search Results for query

December 02 2019

12 Days of Savings

From family meals, travel, gifts, and social outings, the holidays are one of the most expensive times of the year. We have compiled some tips to help you spend mindfully during this holiday season.

Read More

November 27 2019

Market Update: FHFA Announces Loan Limit Increases

The Federal Housing Finance Agency (FHFA) has announced that the conforming loan limits will be increased to $510,400 in 2020

Read More

November 20 2019

Why Interest Rates Aren’t the Only Thing That Matters

Shopping for the lowest rate when looking for a lender could be a detriment to your homebuying experience. There is much more that goes into a positive homebuying experience than the mortgage price tag. If you place a value on communication, timeliness,...

Read More

November 14 2019

Homebuyer Solutions Group Success Story

Marylynn M. and her husband successfully improved their credit scores while enrolled in Eagle Home Mortgage’s Homebuyer Solutions Group (HBSG) program and were able to purchase their dream Lennar Home after graduation. We spoke to HBSG Credit Specialist,...

Read More

November 07 2019

Home Organization Tips to Spark Joy

There is a proven correlation between home clutter and stress. Organizing your abode is a quick and relatively easy way to bring more joy (and extra time) to your life. Here are some home organization tips to help you spark joy!

Read More

October 30 2019

Find the Right Home Loan For You

There are several types of mortgage loans that fit various needs. Here is some information about some of the most popular products and why they might work for you.

Read More

October 24 2019

Reverse Mortgage Myths Debunked

As a senior, age 62 or older, a Reverse Mortgage enables you to tap into the equity of your home and benefit you financially today! The funds you receive can be used to eliminate your monthly mortgage payment, pay off debt, increase your monthly cash flow, or...

Read More

October 17 2019

What to Expect: The True Cost of Homeownership

Most soon-to-be homeowners are prepared to budget for their mortgage payment and down payment, but you should go into your dream of homeownership with a clear picture of all of the costs associated with this milestone.

Read More

October 09 2019

A Simpler Path to Homeownership with Credit Solutions

Interview with Credit Specialist, Sara Gellatly, to learn more about what HBSG is and how it helps real customers achieve their dream of homeownership. 

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?