If you’re buying a home, you’re most likely going to need a mortgage… and in order for a lender to give you money, your credit will need to be up to par.
Most lenders look for scores above 600, although there are exceptions.
Unforutnately, there’s no such thing as an overnight fix when it comes to credit—especially if you have a long way to go.
However, there are a few things you can do to improve your credit score, and you can start today.
How to Improve Your Credit Score to Get a Mortgage
First things first: try to keep all your credit card balances under 30% of your limits. If you can shuffle debt around and get lower interest rates while keeping each credit card account under 30% utilization, it might be a good idea to do so.
What else can you do?
Try to Eliminate Credit Card Balances
If you can pay off any of your cards, do it.
Leave Old Debt in Place
Don’t close old credit cards you no longer use, and don’t try to get paid off loans removed from your credit report. Lenders like to see that plenty of organizations in a variety of industries have given you credit, even if it’s all paid off. Besides, lenders also look at the age of your credit history; removing old debt that’s paid off makes it appear as if your credit history is shorter.
Pay On Time… Every Time
One of the biggest factors that plays a role in your credit score is whether you pay your debts on time. Most companies have a short grace period after a bill’s due date, but if you go past that, you open yourself up to negative credit reporting. Pay all your bills on time, every time they’re due.
Are You Looking for a New Home in Tampa Bay?
When you’re ready to start looking at homes for sale in Hillsborough County, Pasco County or Pinellas County, we’re here to help.
Call us at 727-584-8480 or 813-961-6000. If it’s easier, get in touch with us online. We’ll begin searching for your new home right away.