Having good credit is essential if you’re planning to buy a home, so follow these four tips and start slaying your score.
If you’re thinking of buying a home at any point in the near future, it’s time to start working on your credit score. There are a few simple steps you can take to do so:
1. Shoot for perfection. 850 is the best score you can possibly get, and while it may seem completely out of reach, it’s definitely attainable. If you budget carefully and pay close attention to your overall financial health, you’ll reach a higher score in no time.
2. Or at least shoot for 750. If 850 is out of reach, a score of 750 will be more than enough to help you obtain the best possible monthly mortgage rate.
3. Set up automatic payments. Did you know that a major portion of your credit score comes from your payment history? Having payments automatically deducted will keep you punctual and keep your score high.
4. Watch your credit limits. If lenders think you aren’t living within your means, this may negatively impact your ability to obtain a loan. Try to stay at or below 30% of your limit. If you can keep your balance even lower, then you should have no problem keeping up a high credit score.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.