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Whether you are considering applying for a home mortgage, a credit card or another type of financing, your credit history is very important. It can be a deciding factor in your ability to get a loan or receive a good interest rate.
How Far Back Do Lenders Look at Credit History?
Lenders will typically look at your credit history over the last six years. Some lenders may look further back we buy houses okc. You should know that negative marks such as bankruptcy and car repossessions will remain on your credit report for seven years.
Late payments are another factor that lenders look at. These accounts can paint you as a risky borrower. However, paying your bills on time is a great way to establish a good credit score.
Lenders will also look at your debt-to-income ratio. This will help them determine how much risk you are willing to take. If your debt is too high, you may be denied. If you have a low debt-to-income ratio, you may be approved.
Some lenders may also look at your employment status. They want to know if you have a stable address and a steady income to sell my house philadelphia. Whether you have recently been fired from your job will also help them determine your financial stability.
When you apply for a loan, your lender will typically carry out a “hard search” on your credit history. This means they will pull your credit report from three of the three credit bureaus. This may take a few minutes, but it will be your ticket to a new credit card account.