Master Your Credit Score
As a borrower, it is vital to ensure that you maintain a clean and healthy credit score according to Lending Bee Singapore. At current interest rates, people with a credit score of over 760 qualify for a rate of 4.3 percent on a 30-year fixed-rate mortgage, which means they only pay $1,484/month on a $300,000 loan. For people with a score lower than 100-points, their monthly payment for the same loan amount increases to $1,593/month. By the time the loan’s term end, the borrower with a score of 100 will have paid about $40,000 more in interest.
Building a good credit score is not magic. A good credit score is developed through good habits:
– Paying your bills on time (if possible, consider automating those you can)
– Avoid using more than 10 to 30 percent of the credit made available to you on your personal credit cards (always make sure you pay them down if you are over the limits)
– Do your best to maintain an assortment of different types of credit to prove you are capable of repaying different loan types
– Do not shop for credit when you do not need it
Freeze Your Credit
While you might have the perfect credit behaviors, becoming a victim of identity theft – something millions of people go through each year – can really mess up your ability to borrow in future days. The simplest way to stop thieves right on their tracks is freezing your credit with the three main credit bureaus (Transunion, Experian, and Equifax.) Once your credit has been frozen, no one, and that includes you, will be able to qualify or take up credit using your name. To apply for credit, all you will have to do is temporarily lift the freeze (we have done it, and it is quite simple). The good thing about this is that you keep yourself safe from pilferers. The good thing is that it is free. If you have children under the age of 16, consider doing it for them too!
Shop Wisely
Whether you are looking for a mortgage, student loan, credit card, a refi, or any other type of loan, always cast your net wide for a chance to find the best rates out there suggest Lending Bee. This is because some lenders tend to plant stakes in the ground when courting some types of borrowers – and these stakes do move over time. For instance, credit unions tend to offer some of the best auto loan rates. At the same time, there are some lenders whose primary business is refinancing student loans. Loan aggregation websites such as creditkarma.com and magnifymoney.com can help you find the best deals. However, it is worth noting that some of the aggregators only show or prioritize listings for credit issuers that pay them referral fees.
Remember Money Rule #26: Just Because Someone is Willing to Lend You Money, That Does Not Mean You Should Borrow
Be it you are talking about the limit of your credit card or the size of your mortgage, just because there is a lender out there who is willing to approve your request for a loan, that does not mean that getting the loan is a good idea considering how it might affect your overall health. Keep this in mind; every monthly repayment is a choice that might end up keeping you from using essential resources for other crucial matters in the years to come.