Improve your credit before buying a new home
Thinking about buying a new home? It’s an exciting goal to set, but one of the main things is having a solid credit score. When it comes to mortgages, a higher credit score can save you thousands of dollars in the long run.
If you’re looking for ways to improve your score, Experian has some things you may want to focus on:
- Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
- Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
- Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Bottom Line
As you set your sights on buying a new home a focus on boosting your credit score could help you get a better mortgage rate when the time comes. If you want to learn more, connect us today for a free consultation.
