Use Your Personal Financial Information To Help Yourself

The digital age gives consumers the chance to find out how they appear to credit agencies, to track changes in credit and manage finances better. With a little determination, consumers who know how to exploit the technology and interrogate the right information sources can use it to assist themselves in qualifying for a home loan.

Unless you just won the lottery or you have great personal wealth, when you go to buy a home you will need to borrow the money to do so from a bank or mortgage company. Lenders will look at two aspects of your finances: Your income and spending habits to decide on your creditworthiness.

Check Out Your Three Credit Reports

The Fair Credit Reporting Act (FCRA) gives you the right to review your credit reports without charge from Experian, Equifax, and TransUnion once a year. If you have not done so in the last 365 days, go to the Website at annualcreditreport.com to download your reports from the three main credit-reporting agencies. These reports will show you exactly the information that lenders will see when they consider your loan application. A little preparation can prevent a disappointment; sometimes consumers discover incorrect information on their reports. You should look through all three reports very carefully and be prepared to query anything that appears to be inaccurate.

Track Your Credit Score Changes

Your FICO Score is an excellent indicator of your financial condition; it is a standardized model for credit scoring, and financial services companies have used it for more than five decades now. There are now web-based services that will give you an up-to-date calculation based on your information from the credit reporting agencies. If you choose one such as creditkarma.com, which does not ask for a credit card when you sign up, you need not worry about fine print trapping you into a payment plan.

Create A Structure To Pursue Your Goal

One of the most useful types of mobile digital applications is the personal finance app. It gives you the insight to track your spending and set up a budget and savings plan. As an example, mint.com will help you set up a budget and even connect with your bank and credit cards to give you real-time information. When you have this sort of insight into your personal finance you have a better chance of staying in control and beating your goals.

The credit card companies and banks know a lot about you, and they use that information to market unsuspecting consumers with any enticing financial products they think that they can sell. So, don’t be an unsuspecting customer any longer. Information is the key to taking control of your financial life. Make use of online personal financing analytical tools to set a budget, pay down your unsecured debt and start saving for a deposit.