Posted by: islamicfinancingnews | September 10, 2012

Islamic mortgages require good credit

Islamic loans need good credit. Although you don’t need to deal with the same interest issues as more contemporary loans, the people who supply these Islamic mortgages still want to be sure they are lending to low risk borrowers. There are a few things that you can do to be sure your house is in order when it comes to your credit score. Here’s a few helpful hints.

  • Make payments on time. Many folks don’t realize that creditors look at late payments as an indicator that you’re not trustworthy with Islamic mortgages. If you’re used to paying late, turning the situation around is easy.
  • Don’t make too many credit inquiries. Applying for a loan is great but playing institutions off each other to get the best rates is frowned upon.
  • Pay more than the minimum. This is another way to convince creditors that you’re not going to be any trouble when it comes to paying back the money you’ve borrowed.

Having a good credit rating is important whether you’re applying for conventional mortgages or Islamic mortgages that avoid Riba. Remember, having good credit is necessary so the lending institution that handles your mortgage doesn’t red flag you as a high risk.

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