A strong credit score proves that you historically pay your bills on time and are generally a good manager of your personal finances. It is a major factor that lenders use to determine if you can qualify for a mortgage loan. If so, congratulations, you are one step closer to financing your home! You are able to unlock how much you qualify for and your interest rate options.
The higher your credit score, the more likely you are to qualify for loans and receive lower interest rates on those loans. So, where should you start?
Here are a few suggestions on how to increase your credit score:
- Start gathering credit early. Open a new credit card to exclusively fill up your gas tank, for example. Paying off small payments over time will establish good credit.
- Pay your credit card bills on time. Payment history is the most influential factor on your credit score, and late payments will stay on your record for seven years.
- Make sure all accounts are current
- Check up on your accounts frequently. Make sure your report is accurate and there is no fraud or suspicious activity on your report.
- Bring all accounts current and pay off any pending dues.
- Check up on your accounts frequently. Make sure you authorized them yourself, and if not, close them immediately.
- Loans and credit cards? Why not both! Having a mix of credit cards and loans can boost your credit score if you pay your installments and bills on time. Be careful to stay within your monthly budget anytime you borrow money.
- Ask for higher credit limits and try to keep balances at 30% or below the credit limit.
Are you wondering what your credit score is, and how it will affect your home buying ability? Click the button below or contact us at (888) 895-4663 to speak with one of our knowledgeable loan officers.