You might be wondering how to fix your credit score before applying for a mortgage. The good news is that you can!
It can be difficult to obtain a mortgage without a decent score. In order to get approved, you need to have a credit score of at least 600.
The following are a few tips you could follow to improve your score. Like paying your bills on time and in full each month, don’t open any new accounts without checking with your lender, and avoid using more than 30% of your available credit limit.
Credit scores are one of the most important factors when it comes to getting a mortgage. If you follow the tips, you’ll be approved for a mortgage in no time flat!
Pay Bills On Time/In Full
The best way to increase your score is by paying your bills on time and making sure that you don’t have any late or missed payments.
The best way to pay your bills on time is by using an online bill pay service, like Bill Me Later. These services allow for more convenience and faster payments.
You should still pay your bills on time, even if you don’t have a credit card. This will show that you are reliable in terms of them considering a loan.
Don’t Open New Accounts Without Checking
It is best to check your credit score once every year as this will help you fix any errors that might be on your report. Each time you open it, it might lower it depending on how you are checking it.
This is why it is important for every person who applies for a mortgage to refrain from opening a new account. This will prevent the application from being denied due to the bad score and save you time and money in the long run.
It is important to speak with someone and do research before you open any new accounts because it could lower your score depending on what account you are opening.
You don’t ever want to hear someone say, “you’ve maxed out your credit card”? That’s bad news for you and your score that you want to keep up.
Avoid Using More Than 30% of Your Available Credit Limit.
As repeated multiple times, your credit scores are a numerical representation of how creditworthy you are. They range from 300-850, with the higher the score, the better your credit is.
The lower your score, the more likely you are to be denied for a mortgage or other financial loan. If you want to avoid getting rejected, it’s important to know how much money you can spend before it starts hurting your credit score.
The amount of money will vary depending on what type of debt you have and what type of loan you’re applying for. It can also save you in the long run depending on your budget and finances.
They can also help with things like budgeting and your house payment calculator. One more time, higher is good and lower is bad!