With rising home prices and mortgage rates, many home buyers are looking for ways to cut down on costs wherever they can. One of the areas that has to do a lot with, is paying off old bills, debts, and credit cards.
Why? because a very good credit score will save home buyers tens of thousands of dollars over the life of their mortgage.
If your credit is damaged, you will have to provide more documentation for your loan. You will most likely be hit with a higher interest rate as well. This is how financial institutions outweigh the risk of giving you money.
If you want better interest rates to save yourself money in the long run, keep that credit score high. Work to repair your credit score by making house and car payments on time, paying off loans before the end of the loan period, and paying off your credit card in full each month.