The credit score that determines if you get a mortgage is a crucial part of your life, but not everyone has the money to pay off the loan, especially when they’re in a tough financial situation.
If your parents have a bad credit score, it can make it harder for them to get loans.
Read More When you do have a good credit score in your parents name, your credit score is often more important than it used to be.
A report released by Credit.com shows that for families with a credit score below 620, a mortgage in their name is worth about 1.3% more than a similar loan for a creditworthy family without a credit history.
A credit score above 620, however, is worth 1.2% more.
The report states that there is a correlation between the score and the number of credit cards you have, so if your parents are getting a credit card, they are more likely to get it.
There is no single factor that can make a mortgage more valuable than a good, healthy credit score.
But, with the right credit history, it is possible to score for a home loan that you can afford and even make a good down payment.
Read MoreA good credit history also makes it much harder to get a credit check from the credit reporting company, but it is still possible to improve your credit.
If you’re in the early stages of your credit, you can avoid a credit freeze and still get a free credit report.
For those who are paying off their credit, a good score can also mean that they don’t have any debt in the first place, which can help them reduce their debt in an orderly manner.