Tips on how to improve your credit score

Agood credit report is a straightforward passage for you to get a good mortgage loan with the best interest rates. A good credit report also gives you very high chances for your loans to get approved. Although you can get a mortgage even when your credit scores are not good, the process can be a lot easier when your credit scores are excellent. Getting your credit scores to attain a good rating may be a challenging task. This article will discuss a few tips that you could use to improve your credit scores before going for that mortgage.

TIPS ON HOW TO IMPROVE YOUR CREDIT SCORE BEFORE YOU BUY A HOUSE

1. LOOK THROUGH YOUR CREDIT REPORTS

Before making any move to engage in buying a house process, make sure you go through the three things that the lender is likely to check on. The first is the steadiness of your income as well as your spouse’s; the next one is the amount of down payment that you can afford, and lastly, your credit history. Ensure the three meet the level of the minimum requirements that your lender needs. If all is good, you can proceed with the plan.

2. DISPUTE ANY ERRORS ON YOUR CREDIT REPORT

It is almost normal to find errors in a credit report. The errors could be from a misinterpretation of your credit data or maybe or even errors from typing. Errors in a credit report could affect your credit scores negatively. Ensure you get a copy of your credit records from your bankers and keenly go through them to ensure the information in them is as it should be. In case of any errors, you are supposed to communicate with your bankers for correction.

3. SETTLE ANY ACTIVE DEBTS

Having any outstanding debts whose payment deadline is near or even overdue may put your credit scores at a high risk of dropping. Before you engage with any lender, ensure you pay off those debts to clear your name from the debt books. Clearing any pending debts highly boosts your credit scores.

4. REQUEST FOR AN INCREASE IN YOUR CREDIT LIMIT

After clearing all your pending loan balances, you stand in a perfect position to get your credit limit increased. Getting an increase in credit limit may not make a difference to your debt-to-income ratio, but it will significantly cause decrease in utilization of your credit as your outstanding debt maintains its position leading to an increase in your available credit. In most cases, when you apply for a rise in credit limit after settling all your debts, your request is most likely to be approved instantly. Getting an increase in your credit limit signifies a good gesture about your credit history, and this will instantly increase your credit score.

5. ENSURE A LOW DEBT-TO-INCOME RATIO

A high debt-to-income ratio is likely to make your lender doubt your ability to pay off the mortgage. To significantly improve your credit scores, ensure that your debt-toincome ratio is as low as possible; it should be at most 12% of your monthly income. The lower your ratio is, the better your credit score will be, and the higher chances to get a mortgage will be.

AVOID ANY NEW LOANS

If you are planning to apply for a mortgage, ensure that you keep away from any other debts. Applying for a mortgage when you already have an existing recent loan will lower your chances of getting the mortgage to almost zero. Ensure you keep away from any new loans until you secure a mortgage.

To get a better knowhow about improving your credit scores, talk to any of our VIP agents stationed all across the state of California. Use the following link; https://thepowerisnow.com/ vipagentsservices/. In case you want to keep yourself up to date with the current developing stories, visit our blogs page at https:// thepowerisnow.com/blog/.

Works cited;

https://www.thebalance.com/before-you-applyfor-a-mortgage-960362. https://www.huffpost.com/entry/ raise-credit-score-mortgagehouse_l_5d0195c2e4b0304a1209884b. https://www.homelight.com/blog/how-toimprove-credit-to-buy-home/.

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