8 Ways to Improve Your Credit

Your credit profile is one of the most important aspects of your home mortgage application. A low credit score could keep you from qualifying for a home loan, or from being offered the best available mortgage rates. Keep these tips in mind when working to improve your credit score:

1. Pay each and every bill on time, and as agreed.
2. Use credit - sometimes a low score is the result of a lack of credit history. Start by applying for a credit card with a low limit.
3. Check your credit report for errors. If you find that any erroneous information is being reported work with the three credit bureaus to get it corrected.
4. Use a small percentage of your available credit limits.
5. Don't apply for new credit accounts soon before applying for a mortgage loan.
6. When shopping for a new loan for a car or home get quotes from all the lenders you are considering within a short period of time.
7. Don't close credit cards when you pay them off.
8. If you inadvertently have a late payment due to a mixup with a lost check or online payment call the company and ask that they not report it to the credit bureaus. Some creditors will provide good customers with this courtesy when it happens only very rarely.

Additional Resources:

Understanding Credit Scoring
History of Mortgage Rates
When To Lock-In A Mortgage Rate

Learn more in the Mortgage Education Center.
 

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