How credit scores affect your ability to get Islamic home loansFebruary 25, 2014 at 5:36 pm
When people applying for islamic home loans are told they need to be aware of their credit score, they often dismiss the notion as something that’s only important to lenders. Nothing could be further from the truth because your credit score is not a measure of how much money you earn or how well you handle your finances. A credit score, as the name implies, is a measure of how well or badly you use credit.
Even if you handle your money well and pay bills on time, not using any credit can result in a poor score regardless of how financially responsible you are. It’s important to keep in mind that having a poor credit score won’t just adversely affect your ability to get islamic mortgage loans. Low scores can affect your insurance premiums or even ruin your chances of being able to rent an apartment.
Here’s a tip to build up a good credit score. An easy way to get back in the good books is to take some regular bills and charge them to a credit card and then set up some automatic bill payments so everything is covered.