It’s financially beneficial to have a high credit score when buying a home with a mortgage. But keeping that credit score high after you’ve purchased a house can be just as important since it can impact your wallet.
Here are six reasons to keep your credit score up even after you have bought a house.
1. Refinancing Your Home
If interest rates plummet, then you may not be able to take advantage of monthly payment savings if your credit score has dropped significantly.
If you have an FHA loan, the government has lowered the mortgage insurance premiums (MIP), and you could possibly save some money by refinancing your loan now.
2. Credit Cards
You may have noticed that your credit card company provides you with a credit score posted on your monthly statement. They want you to know what it is to help you maintain a higher credit score. Also, it helps them keep track of decreasing credit scores. Some credit card companies publish in the fine print that they have the right to increase your interest rate if your credit score decreases to a certain level, or if you’ve missed a few payments.
3. Loan Terms
This is an extension of the first two. Typically, when you see rates and payments being advertised on TV, in magazines or on the Internet — whether it’s for mortgages, cars, etc. — you are seeing loan terms for those who have the highest credit scores/profiles.
4. Auto and Life Insurance Policies
While they may use a different credit-scoring system than the one used for mortgages, the premium you pay may be based off of your credit profile. But they usually get their information from the major credit bureaus, too.
5. Cellphone Companies
Some cellphone companies will run a credit report when you sign up for a new contract. They want to make sure that you will pay your bill. You may not qualify for some of the promotions they run due to a lower credit score.
6. Utility Companies
It’s common for utility companies to check your credit, and while the rates you pay will be the same as everyone else, you may have to pay a higher deposit.
If you’d like to refinance and take advantage of a lower monthly mortgage payment, call our team with your questions at 813-707-6200.