Question:

How does mortgage payment history affect credit?

Answer:

Rental and/or mortgage payment history have significant influence on your credit rating. Also, the way you have met your housing expenses so far is the way lenders will assess your credibility as a consumer.

Even more - since your mortgage is a long-term secured debt it has greater weight than non-secured short term debt. True, setting up small debt obligations and paying them on time helps build credit. However, nothing destroys credit faster than failure to make rental and especially mortgage payments on time.

At the same time, managing to pay mortgage on time does build up credit and improves your trustworthiness as a borrower. By keeping your mortgage payment history in order, you will sooner or later be able to qualify for more house due to high credit and equity built in your home.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage