If you are planning to purchase your first home, by now you probably know that having a good credit score can go a long way towards helping you get a loan for your new house. Most mortgage companies will not even consider giving you a loan unless you have consistently maintained a respectable credit score for a while. Having a good credit score can also help you get better interest rates on your loan. If your credit score is currently not so good, fear not, there are ways you can improve it, but you will need to start as soon as possible, as time is of the essence. There is no quick fix for bad credit scores, so you will need to be patient, and above all, diligent.
1. Pay your bills on time. Late or delinquent payments can have a major negative impact on your credit score, so the old adage “Don’t put off till tomorrow what you can do today” is especially relevant when it comes to paying your bills in a timely manner.
2. Try and keep your balances low on credit cards and other revolving credit. High outstanding debts can affect your credit score negatively, so if you can get by with paying for items in cash instead of putting them on your credit card, this will work to your advantage in the long run.
2. Open or apply for new credit accounts only as needed. Do not open new account unnecessarily, just to have a better credit mix. It probably won’t help your credit score improve much.
3. Pay off debts instead of moving them around, and try as much as possible to minimize your outstanding debt. Whenever you get any unexpected windfalls or bonuses, consider using those to pay off any outstanding debt, instead of spending it all on a new purchase.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
