Is your credit score lower than you’d like? Don’t worry. Your credit score can be improved. These tips can help:
Check for Mistakes
Mistakes do happen. If there are errors on your credit report, this can significantly reduce your credit score. Make sure to correct any errors as quickly as possible.
Reduce (or Eliminate) Credit Card Debt
Pay down your credit card bills as much as possible. If you can pay them off completely, all the better. Then, keep paying off the entire balance every month. Additionally, avoid transferring credit card debt to another card. This can also lower your score.
Spend Less Than Your Limit
While you may have a large credit limit, avoid using the maximum allowed.
Give Yourself Time
If you have had credit difficulties, give yourself at least one full year to build up a good credit history before you apply for a mortgage.
Don’t Charge Big Ticket Items
Whether you need to buy airplane tickets for your family’s yearly vacation or appliances for your future home, wait until your loan is approved. These big ticket items will be added to your current debt balance and affect your loan limit.
Don’t Open New Credit Cards
A fantastic new rewards card could be a tempting offer, but hold off. Having access to too much credit can also lower you score.
Shop Mortgage Rates in One Fell Swoop
Too many credit applications can lower your credit score. But, multiple inquiries from the same kind of lender are typically counted as a single inquiry if they are submitted within a short time period.
Have questions about your credit score? Contact one of our Loan Officers today.