The process of applying for a mortgage and then getting it sanctioned, as well as keeping up with timely payments is definitely a hard task. Moreover, a substantial chunk of the debtors’ money goes into these payments and the remaining income is at most times used up completely for other personal expenses. Since mortgage loans take up a significant time to repay, a well-planned person can cover up expenses and yet at the same time be able to repay the mortgage before its time.
An early closure means that the individual would be relieved of a major debt and be able to invest money into other investment forms for future usage. However, pre-closure of loan also means saving up a considerable reserve of money on a regular basis, so that there is no inadequacy of funds at the last minute.
In order to be able to repay a mortgage loan before its time, it is important to consider all the factors including the feasibility. One must remember that an exuberant loan will take the whole time of the tenure or more to repay if the individual does not sort out his or her finances accordingly. Portioning out some amount of extra amount, after taking care of all expenses related to the loan and some for savings can help an individual add an extra sum of money in the monthly repayments.
However, one has to enquire the validity of such extra payments, and inform the creditor in order to ensure that these amounts get reflected in the overall loan balance so as to avoid any confusion.
There is also a possibility that an individual’s earning capability might increase, instead of being stagnant. In such advantageous cases, one can re-evaluate the affordable amount and refinance the mortgage loan with the lender for a shorter repayment period. This will definitely help to repay the loan over a shorter number of years compared to the one that had been planned for a longer stretch of time. In some cases, a debtor could throw in an extra month’s payment into the yearly schedule so as to get ahead of re-payments as well.
While on the negative side, a pre-payment of a loan would mean that the individual has to live on strict finances for a period of time without being able to splurge on other luxuries. But such repayments will be a major benefit for the future as one would not lose too much on interests.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.