4 Mar, 2024
Do you know your FICO?

FICO represents your credit score collected from various credit bureau throughout the country. It was introduced in 1989 by Isaac corporation has been known as pico ever since. It is expressed as a three digit number between 308 50 and it grades, your credit worthiness, the higher, the number the more credit worthy you are. Credit service providers, like credit cards or mortgage lenders will base themselves on your score to approve or decline your application. So to your benefit to know what it is and how you can improve it before you apply.

Your credit score is broken down into five categories: payment history, 35% represents if you paid your credit bills on time; amounts owed 30% represents how much you owe as a percentage of all the credit that you have available; length of credit history, 50%, the older your history, the better it is assuming that you make your payments on time; credit makes 10% if you have different types of credits, such as credit card loans and auto loans; new credit 10% this is a Negative or penalty if a borrower has absorbed a lot of new debt. This indicates to lenders that there may be some financial difficulty with the consumer. So what do you need to do to improve your credit score before you apply for a mortgage loan to buy property in Mexico. Remember that, next loans, another international lenders that led to foreigners in Mexico will consider their credit score in their home country and not what is posted in Mexico, assuming you have a credit score here.

Step one is to get a free copy of your credit score. Consult the following websites for USA citizens and Canadian citizens by law, the credit bureaus are applied to provide you with one report on a regular or occasional basis.

Step two is to review your report to make sure that it is accurate. Did you contest any information that is inaccurate directly with the credit question. They have a detailed process on how you can correct an update to your information be prepared and patient. They will ask you Complicated question to ensure that it is you and evidence to support your claim.

Step three just to make sure that you pay your credit debt. If possible payment option if you’re credit provider provides that option to make sure that you never miss a team. However, the most important considered by credit bureau in evaluating your credit worthiness is your credit utilization ratio. This is the percentage of total credit over the total credit available to you. For example, if you have total credit available of $100,000, you should only use, and then you get in time, 30%. Reimburse as much as you can Generally speaking the lower ratio is the better it is. Or below 30% at least three months prior to applying for.

By following the outlined steps to obtain and improve your credit score, you’re not only preparing yourself for a smoother mortgage application process but also enhancing your chances of approval. Whether you’re a US or Canadian citizen looking to buy property in Mexico, it’s essential to have a knowledgeable partner to guide you through the intricacies of obtaining a mortgage abroad. For any questions or assistance related to obtaining a mortgage in Mexico, don’t hesitate to contact us. Our team is here to support you every step of the way, ensuring you have all the information and help you need to make your property purchase as seamless and successful as possible.