Accomplishing the dreams of homeownership is an amazing feat and ultimately the biggest financial decision you’ll ever make. Nothing is better than knowing that your hard-earned money is going towards something you own and not to someone else (A.K.A renting). So, when it comes to purchasing a home, where do you start? The answer is simple, your credit. Your credit score can be the deciding factor of whether or not you are pre-approved for a mortgage loan. We understand it’s very intimidating and thankfully Producing Branch Manager of GEM Mortgage, Stephanie Wade is here to share her tips & tricks on easy credit fixes. See below for her recommendations:
PAY YOUR BILLS ON TIME: The best way to improve your credit score is by paying your bills on time.
PAY MORE THAN THE MINIMUM: Paying more than you owe on your outstanding debt balance can have multiple benefits, such as reducing overall debt load and pay off balances faster.
WORK ON PAYING OFF DEBT: Keeping your open credit utilization rate down is key to increasing your credit scores. Paying down revolving credit card balances to 30% of the credit limit is key.
CHECK FOR and REMOVE INCORRECT INFORMATION REPORTED ON YOUR CREDIT REPORT: Make sure the information on your credit report is accurate and up to date.
HAVE A GOOD MIX OF DEBT: Having a balanced mix of debt can be better for your credit scores versus a single type of debt. The different types of debt are Bank Credit Cards, Retail and Gas Station Credit Cards, and Installment Debt such as Auto Loans and Student Loans.
KEEP YOUR CREDIT CARDS OPEN, EVEN IF YOU ARE NOT USING THEM: Keeping your credit cards open even if you are not using them help’s your credit score. This is because your credit history and length of accounts being open is also factored in your credit scores.
DON'T APPLY FOR AN ABUNDANCE OF NEW CREDIT: Be careful about applying for lots of new credit, hard credit inquiries can hurt your credit scores.
Whether your credit score is great or average, these tips will help you in the long run.If you have questions about getting pre-approved for a home purchase, feel free to contact Stephanie Wade of GEM Mortgage:email@example.com/ 909.714.9445