Many people believe that every inquiry affects a credit score however, that is not the case. Don’t be fooled certain types of inquiries do affect your credit score. To help keep a good score it is important to know what credit inquiries make an impact, and which ones do not.
The most often inquiry that will not affect your credit report is a soft inquiry. These inquires have nothing to do with a consumer’s attempt to get credit, and are not harmful to the report at all. Things like credit checks made by potential employers are examples of soft inquiries.
A hard inquiry is used if a person is attempting to get a loan, and it does have an effect on a person’s credit report. This information can be seen in the future by a bank, or any other lender. Whenever a person applies for a mortgage, car loan or credit card they are considered hard inquiries, or an attempt at a loan. Problems can arise if a person attempts a large amount of hard inquiries in a short amount of time. Lenders may think that the consumer is trying to obtain as much credit as possible.
In order to avoid excessive hard inquiries on your credit report it is a good idea for you to run your own credit report to see where you stand before trying to obtain a credit card or loan. It is also a good idea to wait awhile if you are turned down for a credit card before you attempt again.
It is important to get an insurance policy that adequately covers you and possessions; when you are on your own for the first time it may be difficult to know what coverage you need. When you are just starting out it is important to look at a few coverage’s.
If you are just starting out you most likely will be renting your first place, in that case you need renters insurance. People often think the landlords insurance policy covers everything, however their policy covers the building not your possessions. Renters insurance covers in these situations.
Homeowners insurance is there to help protect the structure and the belongings of your home, as well as offer liability protection. When purchasing homeowners insurance it is important to get enough to cover the cost to rebuild your home in the event it is totally destroyed.
Like renters insurance; this type of coverage protects primarily your personal property. Many condo associations require you to cover portions of your unit which this covers.
It is illegal to drive without auto insurance in most states. The cost of this coverage depends on factors like where you live, your age, car, and driving record. Some may require purchasing comprehensive coverage in addition to basic liability when leasing or financing a vehicle.
In most cases, the Affordable Care Act lets young people stay on their parent’s heath insurance until age 26. But if insurance isn’t available through your parents or your employer you should consider purchasing individual health coverage.
While many young people don’t see the need of purchasing life insurance it can be a wise purchase. This coverage helps protect family members from financial burdens after your death. At a young age life expectancy is high, so you may benefit from lower rates.
EMERGE INSURANCE AGENCY
When purchasing a new home it can be easy to be swept up in the joys of home ownership, particularly if you are a first time homeowner. Owning a home can upgrade your lifestyle and give you a sense of accomplishment; and with all that in mind many rush through the mortgage application process.
While this is an exciting time it is important to take your time and realize that things done in a rush could slow your mortgage application process down. It is important to consider some missteps before you begin your application process that could possibly delay your application review, or even get you declined by a lender.
1. Fail to Get Preapproved
Buying a home is the largest purchase most will make in their lives, and before making any large purchase it is always wise to prepare. The best way to prepare when looking for a home is to get preapproved to see if you even qualify for mortgage financing.
2. Altering Your Credit Behavior
Some believe if you pay off all of your bills on time, that makes it ok to use a large chunk of your credit. Too much credit is bad for your credit score and mortgage approval, because it seems to the lender that you rely on borrowing money.
3. Overlooking the Fine Print
Many are very eager to apply for a mortgage when they have not fully researched it, and end up being approved for a mortgage they really didn’t want. Rushing when applying for a subprime mortgage is a major waste of time for both you and your lender.
4. Bending the Truth
It may not seem like a big deal if you embellish about things like income, or credit score on a mortgage application, but in these post financial crisis days it can really hurt you. Nowadays lenders can find just about anything in your financial past, so it’s a good idea to be completely truthful.
EMERGE INSURANCE AGENCY
With people getting in the kitchen for the holidays it’s important to be careful. According to State Farm more fires resulting from cooking occur on Thanksgiving than any other day of the year. Studies show that the main causes of home fires are cooking fires, with November having the highest number of fires related to cooking, followed by December.
The states with the most claims for grease, and cooking related fires are California, Texas, Illinois, Pennsylvania, Ohio, New York, South Carolina, Georgia, Minnesota, and Michigan according to State Farm.
With the beginning of the holiday season it’s important to follow a few tips the stay safe cooking. Make sure when frying a turkey to do it outside away from anything flammable. The turkey should be completely thawed and dried before frying. Make sure you never leave the turkey unattended and keep a fire extinguisher close by.
Be safe and have a Happy Thanksgiving.
EMERGE INSURANCE AGENCY
Cecil Williams -