Does My Credit History Really Clear After Seven Years?
The credit reporting agencies have developed a system that they believe works well for determining an individual’s ability to repay debt. The agencies have decided that seven years for a credit history to clear is a good strategy.
Credit scores evolved into tools that lenders use when evaluating applicants. When they issue credit or debt to a client, their goal is to ensure that the client can repay it with ease. For example, Mortgage House is a non-bank lender that uses several tools to evaluate all home loan applications. Our loan specialists have access to proprietary tools that help them evaluate applications efficiently.
They also employ several lender’s ratios before making a final decision such as buffering. In addition to employing financial stress tests, Mortgage House will take a look at credit scores to round out the application. Our goal is to spot patterns in financial habits. The information allows our team to put the candidate in a position to succeed. Sometimes this means purchasing a smaller home. Then, when the homeowner’s financial position improves, we can explore other options.
Mortgage House works with an array of homebuyers including those who have blemishes on their credit report. We have a range of mortgage choice options that fit most financial circumstances.
Credit History and Mortgages Conclusion
It does take seven years for a credit history to clear itself. Homebuyers who are in the middle of the cycle might qualify for a Mortgage House bad credit home loan. Contact our loan specialists to obtain more information today.