Does Selling Your House Affect Your Credit Score?
If you paid your mortgage on time each month until you sold your house, then your credit score should not be affected.
The biggest things lenders and creditors will pay attention to is your payment history. If you missed payments on anything, then the lenders will notice and be a bit more hesitant on lending for the next home you look into purchasing. Creditors pay the most attention to payment history, so keeping yours pristine is important for your financial portfolio.
This payment history extends to mortgages. If you missed a mortgage payment, it looks bad to creditors. If you sold your home without paying off the mortgage in full, or at least on time, then your credit may be severely damaged.
However, if you paid off your mortgage and never missed a payment, your credit is in good standing. Selling your home and paying off the mortgage will stay on your credit report for 10 years. Even if you sold the house before you paid off your mortgage, your credit could still be in good standing, providing that you first paid off the original mortgage with any money made from selling the home.
Your Credit Post-Sale
The great thing about no longer having a mortgage is more money in your pocket. The worst thing about no longer having a mortgage is the neutral effect it has on your credit.
The most common thing creditors look for when making a loan is your mortgage payment history. A mortgage is the most common high ticket item that people regularly pay for. If you are asking for a loan or higher credit limit, then a creditor will look at your credit history.
Without a mortgage, you aren’t making payments, and therefore, your credit will stay the same. This isn’t inherently bad; it’s just not beneficial. Having a mortgage can benefit your credit by showing creditors a sustained history of regular payments.
Ultimately, getting a new mortgage is your decision. If you would like to make more ambitious financial ventures in life, then a mortgage may be the best way to strengthen your financial standings.
How Do I Raise My Credit Score After Selling?
If you rent a home after selling off your previously mortgaged house, then your credit score will not be affected. Your credit score will not go lower because of selling a home, but it will not go higher either.
If you want to raise your credit scores, then you could pay off your sold home’s mortgage and obtain a new mortgage for a new home. The benefits of an increased score are not immediate, but will be a great payoff towards loftier purchases in several years.
Also, if you sell your home and use the new money to pay off your mortgage along with credit card debt, then your score will rise.
Ready to Sell?
If you want to get out of your mortgage fast, get in touch with Fast House Sale. We will buy your home, no matter the mortgage condition, and work with you to give you a fair price. Don’t be shackled by debt any longer. Contact us now and get your home sold fast.
