Improving your credit score takes time and effort, but if you are applying for a mortgage with Home Sure Lending, taking a few steps beforehand to make your credit score as robust as it can be will ensure that you get a better deal on that mortgage. Here are five tangible steps you can take to improve your credit score before applying for a mortgage:
- Pay down credit card balances. One of the biggest factors that goes into calculating your credit score is how much debt you have, versus how much credit you have. The more credit you have and the less debt you have, the better your score will be. If you’re carrying a lot of credit card debt, paying it down is a great way to remove a lot of the debt in that ratio and to therefore boost your score.
- Stop spreading your purchases over multiple cards. If you often use different cards to make small purchases, pick the one with the lowest interest rate and just start using that credit card whenever you need to pay on credit. Pay off the balances on the other cards—don’t close them, but do stop using them.
- Don’t remove paid-off debt from your credit report. When you pay off a credit card or a car, don’t immediately jump on the phone and ask the reporting agencies to remove it from your report. Old debt that you have paid off shows that you are capable of paying off a large debt and can make you a much more attractive investment when it comes to applying for a mortgage.
- Make an effort to pay on time. Don’t let bills slip your mind and their due dates pass you by. Set up a system of bill paying that ensures that you actually pay those bills well before they are due, and that you are never scrambling to try to get one in before it is late.
- Let it go. Your credit score is far from the only criteria that Home Sure Lending will consider when offering you a mortgage. Instead of obsessing about this one aspect of your application, follow these tips and then start making sure that the other areas of your application are also robust.