1 year, 3 months ago
Can buying a house give you better credit?
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Hi @marinad!
The act of buying a house itself will not affect your credit score but for most people need to take out a mortgage. Mortgage is a large and secured debt. In short term, large debt will hurt your score but in long-term it will dramatically improve your credit history if you make your mortgage payments on time.
If you apply for a mortgage you should be aware that multiple credit inquiries can hurt your credit score. Lenders are aware that buyers need to compare offers before committing to a large debt so they usually give 30 days before taking out a mortgage count as single inquiry. This won't hurt your credit score. If you borrow hundreds of thousands of dollar this will temporarily lower your score.
On the other hand, you can uses your mortgage to improve your credit score by making sure that you pay on time.
source:
http://www.ehow.com/info_7759815_buying-house-improve-credit-score.html
The act of buying a house itself will not affect your credit score but for most people need to take out a mortgage. Mortgage is a large and secured debt. In short term, large debt will hurt your score but in long-term it will dramatically improve your credit history if you make your mortgage payments on time.
If you apply for a mortgage you should be aware that multiple credit inquiries can hurt your credit score. Lenders are aware that buyers need to compare offers before committing to a large debt so they usually give 30 days before taking out a mortgage count as single inquiry. This won't hurt your credit score. If you borrow hundreds of thousands of dollar this will temporarily lower your score.
On the other hand, you can uses your mortgage to improve your credit score by making sure that you pay on time.
source:
http://www.ehow.com/info_7759815_buying-house-improve-credit-score.html
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