Question:

Credit score - does it increase or decrease after purchasing a home?

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Its a little confusing. While the house isn't paid off (30 years from it) , it appears that I am in debt - so it seems that my score would go down. However, it has value, so would would the score increase? Any ideas?

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6 ANSWERS


  1. any time you purchase somethingon credit or cards,your line of credit will go up,but like all has said, keep the pay-ments in line and even double up on them some times, they love that, and make sure you stay away from small time places, like records and books on line or mail, they will ruin your line of credit, and who needs to order books and cds when you can go down to a store and look at them your self. hope this helped a little. goodluck on your new home if you get it!!!


  2. initially it will decrease because you have debt, but if you pay your bills on time, in full, every time, then your credit score should begin to climb again. good luck

  3. Because you are buying an asset that will appreciate in value eventually your score will go up.  As long as you pay your mortgage on time your score will go up because you will be gaining equity, meaning you will have something to borrow against when applying for lines of credit.

  4. Your score will go up if you are paying your mortgage on time.  The biggest change is with your debt to income ratio, which will increase since you have an extra payment showing on your credit report.  Your dti is what you owe vs. what you make.  This could cause you not to get another loan or credit if your debt to income ratio is too high.   Other than that, your score will improve, especially over time.

  5. The mortgage loan will help improve your score, provided that you pay on time.  I am a mortgage broker.

  6. it depends if u pay ur bills on time

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