How to Keep a Good Credit Score

How to Keep a Good Credit Score

Your credit score is all but responsible for the success or failure of your mortgage application process, learn how to keep a good credit score. 

When you are in the market for a new home (or anything that requires a loan), your credit score plays a major role in the process. Most lenders will use this three-digit number, which evaluates your ability to pay back debts, current debt, and length of credit history to determine your credit risk. Your credit score helps lenders determine and predict (with some accuracy) whether you will pay back your mortgage and if you will pay them on time.

  1. Pay your bills on time
    Lenders are not keen on seeing late payments, even bills paid just a few days late can negatively impact your score. Not paying your bills and other dues on time will lower your credit score. Likewise, the longer you pay your bills on time, the better your score gets.
  2. Reduce your credit card debt (and all overall debt)
    Work to keep your due balance as close to zero as you possibly can. Pay off as much credit as you can and pay off those that are close to their credit limits first.
  3. Check your credit report
    Keep a close eye on your credit report by getting a free credit report once a year. Review your credit report closely and look for any errors like reported late payments that were not and mentions of accounts that do not belong to you. Report errors as soon as you find them.

To properly purchase a home, contact a dedicated home loan specialist like me, Andraya Coulter. I serve the Bay Area and the entire state of California and Texas with quality, suitable, home loans! I can help guide you through the refinance process and make sure you get the home loan you deserve. Call me!

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