How to Boost Your Credit Score
June 26, 2013
It’s no secret – credit scores play a major role in the mortgage loan process. Unfortunately, some people don’t monitor their personal credit.
If you pay your bills each month, you might assume that you have A+ credit, thus eligible to qualify for a mortgage loan. You might start looking for properties in your local area, and you may request information from a moving company. But until you actually meet with a home loan lender, there’s no way to know whether you qualify for financing and are really ready to move into a new home.
Avoid surprise rejections and do everything possible to maintain stellar credit. Here are three credit tips to get your foot in the door.
- Pay down debt. Sure, you may pay your bills each month. But if you have maxed out credit cards, you won’t have the best credit score. Pay down your balances and your score will increase. This improves approval odds and helps you snag a lower interest rate.
- Stop applying for new credit. Each inquiry reduces your credit score. Only apply for credit when absolutely necessary to maintain your personal rating.
- Don’t close accounts. Maybe you’re looking to unload your wallet and get rid of a few credit cards. If you decide to cancel some of your accounts, start with your newest accounts. Closing old accounts can shorten the length of your credit history, thus damaging your score.
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