With the news yesterday that the Feds plan on keeping interest rates low through 2014, along with current house prices, are you contemplating a home purchase in the near future?
If you are thinking about buying a home, an important first step is to examine your finances. If you have not checked your credit reports in the past year, take the time now to check them. You are eligible to receive a free credit report annually from Experian, Equifax and Trans Union. If you notice any errors on your credit reports, or they contain negative information, you can work on cleaning up your credit reports before you start looking for a home.
One of the things that heavily effect your FICO score, which lenders look at to determine if they want to approve you for a home mortgage, is how much debt you currently carry. In fact, your outstanding balances category is the second most important one of the five categories used to calculate your FICO score. When you reduce your credit card debt, along with paying bills on time and cleaning up delinquent debts, your credit score will become stronger as time goes along. Below is an infographic which outlines a terrific, simple strategy to decreasing your credit card debt.
What are your thoughts about the feds’ decision to keep the interest rates low through 2014? Are you taking a look at your finances to see how to strengthen them?