The Best Ways to Boost Your Credit Score

Buying a home is a long process that starts months before you ever look for the first home listing online. A variety of factors, including your credit score, all factor into whether or not you are approved by a lender. If your credit score could use some TLC or you have a good credit score you’re looking to make great for the best possible interest rates.

Here are some of the best ways to boost your credit score before purchasing a home:

1. Check your credit report, so you know exactly what you’re working with. Many people are surprised to see what their credit score is, and some people find that their identity has been compromised after taking a look. You should request a free report from each of the three reporting bureaus. As part of the FACT Act, you are entitled to one free annual report from each agency, so don’t fall for a scam that says you have to pay.
2. Fix any mistakes on the report. 25% of people who are turned down for a mortgage are turned down because of errors and inaccuracies on the credit report. Follow instructions on the website for the affected bureau to fix the errors, and you should receive a response within 30-60 days.
3. Pay your bills on time every month. Missing a single payment can ding your credit for months afterward. You should also always pay above the minimum payment on your credit accounts every month.
4. You should never carry a balance on your credit cards that is over 50% of the limit. As quickly as you can, pay down your debts so that they are below that 50% threshold.
5. There is some debate about whether you should close out credit cards with a zero balance. In most cases, it is best if you leave them open as closing them could lower your score.
6. Avoid making any other big purchases in the months before you apply for a mortgage. Wait to buy a car or put your Hawaii vacation on a credit card until after you’ve received home financing. Any major purchases will alter your financial picture in the eyes of banks.

Boost Your Credit Score and Partner with Equity Mortgage

Regardless of your current credit score, Equity Mortgage will be there to support you. I am experienced in getting homeowners the best possible mortgage product for their situation. Since every client is in a different situation, I encourage you to get in touch and learn how I can help. Contact us today by calling 443-471-4310. I look forward to hearing from you!