Does buying a home help improve your credit score?

My wife and I are planning to buy our first home now and we heard that when you buy a home (1st time buyers), your credit score goes up. We need to know if this is true and how long it would take to reflect in our scores because we need to be approved for a student loan in 4 months and we are already working with our credit for that to happen. If this is not true we would rather continue renting then buying a home now. Any advice?

Does buying a home help improve your credit score?

A mortgage paid as agreed is the best thing anyone can have on their credit.

My wife and I have been in our home almost 4-years now, never been late with a payment and our scores have gone up over 100-points.

Very few people ever get to 800 or above without a mortgage paid as agreed.

Does buying a home help improve your credit score?

Buying definately saves you money in the long run.. especially when you get back part of the interest as a IT refund... I assure you it will be a good decision provided you buy a house within your means and can afford your mortagage..

IT does boost your credit score over a period if you pay on time..

Does buying a home help improve your credit score?

Not necessarily. You are assuming a lot of new debt so you scores would likely decrease initially. After you%26#039;ve made on-time payments for 12 months or so, that payment history will start to boost your scores.

Does buying a home help improve your credit score?

Having a mortgage loan appear on your credit report usually improves your credit. You should see significant bumps at six, twelve and 24 months, assuming timely payments.

Getting approved for a student loan should not be that difficult. If you have good enough credit to qualify for a mortgage, you should be fine.

A Stafford Loan does not take your credit score into account. A private loan will, but generally they don%26#039;t worry about your current income, as the loan will not come due until after you graduate.

If you can get a good deal on a home that you can afford, I see no reason to wait. Good luck, and enjoy your new home.

Does buying a home help improve your credit score?

Initially obtaining a mortgage will probably lower your score some since you are taking on a huge amount of debt, however over time it will improve the score if you pay on time every month your score should see an improvement in about 12 months.

Does buying a home help improve your credit score?

It might drop initially, because it%26#039;s new debt and a lot of it. In time, it will be a good thing once you have a history proving you can handle it.

Don%26#039;t seat the credit score. Lenders look at a lot of other things besides the score, especially for student loans.