If you’re like most people who want to buy a loft or condo for sale in DTLA, you know that you’ll need a mortgage loan to do so.
But these three persistent credit myths could be hurting your chances of qualifying for the best terms and rates.
3 Credit Myths That Might Hurt Your Chances of Buying a Loft or Condo
Myth #1: Closing a credit card can boost your credit.
You don’t want to close old credit cards if you’re trying to boost your score. There are two reasons for this:
- The age of your credit plays a role in your credit score. If you close an old card, the average age of your accounts takes a nosedive.
- You’ll instantly lose access to that credit, which shows lenders that you have less available credit. Lenders want to see that plenty of companies are willing to let you borrow their money.
Myth #2: Checking your credit hurts your score.
It doesn’t hurt a thing to check your own credit reports or look at your scores. While some types of credit checks do have a temporary negative effect – like applying for a mortgage – looking at your own is fine.
Myth #3: You should have as little credit as possible.
Sure, you shouldn’t spend money you don’t have – but that doesn’t mean you shouldn’t have various lines of credit. In fact, showing lenders that you have a diverse profile when it comes to borrowing is a good thing.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
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