Your credit score is a major detail with regards to what loan program you may be qualified for, what your interest rate will be, maximum purchase price, and other factors. Most potential borrowers feel that they can't get a home if they have a low credit score and delay or never discuss their situation to a lender.

At 1st Nationwide Mortgage we are determined to providing sound advice to clients and borrowers who are thinking about buying a home. The following are some common credit score myths rebutted!

Your Low Credit Score Will Remain LowYou are in complete control of your credit score and whether or not it stays below 600 or 700. If you simply pay your debts when they are due each month, remain below 25% of your credit limit nine times out of ten - your credit score will improve with time.

Checking Your Credit Will Hurt Your ScoreThere are a lot of websites and banks where they allow you to check your credit score for free without any dings to your score. However, if a lender or insurance company checks your credit score - that's when you will see scoring points removed because it means you are applying for credit.

The Credit Score You Get is the Same One Your Lender Will GetThe score you may have pulled from the credit bureaus, Credit Karma, or whichever third-party was an estimated credit score. These scores are not the scores that lenders actually use to approve your application. The best credit score monitoring service that resembles a lender's score is from MyFICO.com. However, you should also know which credit scoring model the lenders uses so you can adjust that with MyFICO.

To Improve Your Score Close Rarely Used Credit CardsA large number of potential borrowers believe that closing a seldomly used line of credit or credit cards is good. The truth is it will actually end up hurting you more if it is an account in good standing that is older than 2 years. If the account has a low balance or zero balance it is sometimes good to keep it.

Paying Off Your Collections Helps Your ScoreAlthough paying off a collection account will help your overall credit profile, it doesn't necessarily immediately increase your score. This is because as soon as a bill is put in collections it stays on your credit report until the reporting period runs out. Although, it can be beneficial to pay it off if you can persuade the collection agency to put in writing that the collection was an error in reporting.

In Order To Build Good Credit You Need to Be in DebtThis is partly true. By keeping your credit card balance below 30% of your credit limit and making small purchases each month and paying those off will boost your score. It's never a good idea to go into debt thinking if I get this job or gig I can pay it back in "X" amount of months. You should only charge what you can afford and when you have stable income.

With A Low Credit Score It Is Hard to Get Approved For FinancingWithout a doubt having a low credit score makes approvals a bit more challenging when applying for a loan but that' not the only thing lenders review. Your overall debt, payment history, liquid assets, and your income will be strong factors. Lenders will still approve you if you have a low credit score, but you'll likely be offered a higher interest rate.

Your credit doesn't need to be flawless in order for you to purchase a home. There is always a way to get your credit back on course and establish peace of mind so you can get a better interest rate on your home. Just remember to monitor your credit score and make smart purchases when beginning the home loan process!