You should start to improve your credit history long before
you are ready to buy a home. As soon as you start using credit cards, do your
best to make timely payments and keep your balance low. This will help build up
your credit score.
If you are preparing to buy a home for yourself, be sure to
take the time now to improve your credit history so you can qualify for a
mortgage. This means paying off any debt before it becomes too late, including
car loans, student loans, or medical debt. You should also lower your credit
card balances so you have more available credit available.
Checking your free annual credit report online, paying bills
on time, and keeping the balances on all of your revolving accounts low.
The following are some other steps that can help improve
your credit score:
- Your credit can affect the mortgage rates lenders are willing to give you when you buy a home, so good credit can save you a lot of money over time.
- If you're wondering how to prepare your credit for a mortgage, you should start now.
- Make sure you have fewer hard enquiries (less than 3) in the last year.
- You'll want to check your credit reports and scores, pay down any credit card balances, and consider asking a trusted family member to be added as an authorized user to a card with a strong credit history.
Prepare wisely before applying for a loan — check your credit score, income, and debt at LendMesh!