Meet the three-digit number that can drastically affect your ability to buy a home.
Turns out, Americans aren’t the best at money management. The average U.S. household has over $15,000 in credit card debt. Another eye-opening survey revealed that one out of every four respondents had less than $100 in savings to cover an emergency. Consequently, people are relying on credit cards to fund their expenses. All of this spells trouble from a home-buying perspective.
Your credit score is one of the crucial determining factors in whether you can qualify for a mortgage. Lenders use it to gauge your financial responsibility: The higher your credit score, the less risky you appear on paper, says Staci Titsworth, a regional manager at PNC Mortgage in Pittsburgh, PA.