Tips to a Better Credit Score and Mortgage Options
When considering purchasing a home, it is important to know your credit score. If you have a low FICO score, you may want to fix your credit first before applying for a mortgage.
Here are some things you can do to improve your credit score:
- Always keep your credit cards paid on time
- Pay the minimum balance if you cannot afford to pay more
- If you have missed payments, catch up the outstanding amounts and then keep them up-to-date
- Payment history is important, so pay regularly and never miss a payment
#Tip – Try not to spend more than half your credit allowance. That seems to be the magic number to keep your credit score improving.
Paying Your Bills:
- As with your credit cards, paying your bills on or before due date is critical to keep a good credit history
- Mortgage lenders, like to know that you pay your bills regularly
- At least six months credit history is important as it shows a responsible pattern of payments and improves your credit score
Store cards are only valuable to the shop where you asked for credit. Try not to use store cards, they do not enhance your credit score and if you are late paying your bill they are quick to report your late payment. Their value to your credit history is minimal.
Do Not Open More Accounts
If you are considering purchasing a home, do not go and buy more items on credit. Keep a stable and improving credit history in order to get a mortgage. Once you have purchased and closed on a home, you can consider more credit, but until then, its a good idea not to change anything that may jeopardize your credit score
Getting Pre-Approved for a Mortgage
Find out more about the various Types of Mortgages here
NEW LISTINGS FORT MILL, ROCK HILL, CLOVER, LAKE WYLIE, TEGA CAY SC
Copyright: iqoncept / 123RF Stock Photo