Creditors look at a number of factors, including your credit score, when assessing your eligibility for a loan or line of credit. One way to improve your credit score is to purchase a home and make timely mortgage payments.
Benefits
If you own a home, potential creditors will view you as less of a risk. Home ownership is a sign of stability, and you often need a favorable credit score to obtain a mortgage loan.
Considerations
Factors that will influence your credit score include how long you have been in your home and how large your mortgage is in relation to your household income and other debts. Generally, the longer you have been in your home, the higher your credit score will be.
Warning
Just because you own a home, it doesn't guarantee that your credit score will be acceptable to other potential lenders. If you have a history of late mortgage payments or are in foreclosure, your credit score will suffer, making it more difficult for you to obtain additional credit.
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