How To Improve Your Credit Score (Get Better Mortgages!)

how-to-improve-credit-score

Why would you want to improve your credit score?

If you’re barely a young adult, credit scores might sound alien to you. But for anyone who’s ever had to get a large sum from the bank, we know how important credit score is — especially if you’re trying to get a mortgage.

Your credit score is the way banks assess how much of a financial risk you are. Since your bank is trying to minimize risk, your credit score impacts the mortgage rates available to you.

If you want to get better mortgage rates, you need to improve your credit score as much as you can. Otherwise, you might never get enough money to get that dream house.

So today, we’ll teach you how to do that. And you’ll see that it’s not as complicated as it seems to be.

 

Ways To Improve Your Credit Score

Know What Your Credit Score Is

The first thing that you should get on doing is knowing what your credit score is.

There are some ways you can do this. You can purchase a credit score from the big three credit bureaus — Equifax, Experian, and TransUnion. You can also consult your bank or lender if they offer a credit score. If you are denied credit, lenders are obliged to give you the credit score they used.

If you have the money for it, you can use third-party services to do it for you.

Aside from credit scores, the big three credit bureaus are required by federal law to give a free credit report every twelve months to anyone who requests for one. This means that you can get one free credit report every four months. Instead of manually bugging each bureau, you can use AnnualCreditReport.com for free.

 

Pay Your Bills On Time

Paying your monthly dues on time shows on your credit report that you honor your financial obligations. This indicates that you are to be trusted with credit. That’s a great way to keep a good credit score.

 

Minimize Your Debts

Instead of keeping five credit cards with varying balances, you should eliminate financial burdens by paying off your least utilized cards and working on using only one or two credit cards.

If you’re racking debt because you’re missing on payments from services you seldom use, unsubscribe from them as soon as you can.

 

Keep Your Credit Card Balance Low

Don’t let yourself use more than 30% of your revolving credit. Pay early and pay often.

 

Keep Old Debts On Your Credit Report

If you’ve completely done paying off a large debt, don’t scramble to remove the records from your report. Keep it — it’s another positive indicator of how you’re able to handle financial obligations.

 

Need more tips on how to improve credit score? Golden Eagle Mortgage Group is here to help. Contact us here. We’ve got a team of mortgage advisers who would love to hear from you!

 

(READ MORE: How Long Does It Take To Improve Credit Score & Other Questions)