Your credit score is essential, as it tells mortgage lenders how financially responsible you are.
If you want to boost your credit score, there are many ways to do so. While it may take some time to see your credit score improve, you can begin working on a better credit score within a few hours.
What is the Importance of a Good Credit Score?
The better your credit score, the easier to get approved for a mortgage loan or other line of credit. Generally, a higher credit score, or good credit, will give borrowers more options, such as low-interest rates, better loan terms, and faster approval.
Steps to Improve Your Credit Score
While you may not see a difference in your credit score immediately, it is never too late to start making financial decisions to boost your credit score.
Don’t Miss Payments
One way to ensure you do not miss a payment is by setting up automatic payments for the minimum amount due each month.
Payment history is an essential factor in determining your credit score, and a history of on-time payments can significantly improve your credit score over time.
Get Current with Past-Due Payments
While late payments stay on your credit report for up to seven years, it does help your credit score to have all payments up-to-date. Also, current payments stop additional late payments from being added to your credit.
Review Your Credit Reports
To help improve your credit score, view your credit reports from all three nationwide consumer reporting agencies. It is vital to your credit score to report any inaccuracies, signs of identity theft, or any unpaid balances that have gone into collections.
Keep Credit Utilization Low
Credit utilization is the amount of your credit limit used at any given time. Keeping your credit utilization rate at or below 30% is recommended. One way to keep check of your credit utilization is by paying your credit card balance in full each month or by keeping the total balance at 30% or less.
Do Not Close Old Accounts
Keeping your old accounts open help maintain the length of your credit history. The older your credit age is, the more favorable you are to mortgage lenders.
Get Rent and Utility Payment History
You can ask your landlord to report your on-time payments to the three nationwide consumer reporting agencies if applicable. While these payments are not always considered, a long record of consistent on-time payments can always help.
Marimark Mortgage is based in Tampa, Florida, and proudly serves homebuyers and homeowners in all of Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing, and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.