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Homeowners have the highest credit scores. Here is 4 Reasons Why!

There is nothing more powerful than a mortgage account on your credit reports. It can help you build to near perfect credit when you stay prompt on monthly payments. We’re talking 30 year and 360 monthly payments. One late payment can also drop it, hard, like 75-110 FICO points.
Plus, to get a mortgage in the first place implies you’ve been financially astute. In this article, we share 4 reasons why being a homeowner is a great stride towards financial prosperity. Let starts.
 
1. It’s difficult to buy a home with bad credit
To get a mortgage, you need to meet the lender’s minimum credit score requirements. On a conventional mortgage that you get from a bank, you’ll typically need a score of 620 or higher.
 
2. People work on their credit before applying for mortgages
It’s common knowledge that a higher credit score will help you get a lower interest rate on a mortgage. And because even fractions of a percentage point can save you tens of thousands of dollars over the years, prospective homebuyers usually work on their credit as much as possible before applying for mortgages.
 
3. Homeowners are older
Older adults have higher average scores on both the FICO® Score and VantageScore systems. The average FICO® Score of the youngest age group is 88 points lower than that of the oldest. With VantageScores, it’s an even greater difference of 95 points.
 
4. Homeowners have a more diverse credit mix
Credit mix is considered a highly influential category in calculating your VantageScore, and it also accounts for 10% of your FICO® Score. Your credit mix refers to how many different types of credit accounts you have, such as credit cards, auto loans and mortgages.
 
If you’re dealing with less than a 680 FICO score, consider addressing the negative items on your reports first. In addition seeking the credit expertise of a lawyer is recommended. They can reveal greater insights and give your more legal options to restore and build great credit.
 
TierOneCredit.com offers 100% Free Credit Analysis of all 3 credit reports and scores. You may schedule a consultation easily by click here:
 
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