When it comes to getting a good interest rate for your mortgage, there are several factors that come into play. Chief among them, as you are probably aware, is your credit score. Needless to say, there are a handful of ways to improve your credit and even more ways to lower your credit score.
It can all seem a little bit mysterious, but in today’s post, the team of mortgage brokers at Scout Mortgage would like to break it down a little bit. The truth is that a few simple things can make a big difference, so if you’re looking for an easy way to boost your credit score, keep reading to learn more!
Our Tips for Improving Your Credit Score
Pay Down Your Debt
If there’s one thing many Americans have, it’s credit card debt. Unfortunately, it’s often unavoidable in this day and age. The good news is that you can use it to your advantage by making your payments on time. The lower you can keep your debt to income ratio, the better off you are. Of course, this isn’t a hard and fast rule, but generally speaking, you should seek to pay for items with your credit card, then pay it off as completely as possible at the end of the month.
Don’t Close Accounts You Rarely Use
One mistake people often make is thinking that they should close unused lines of credit. There is some logic behind that, but in many instances, this can hurt your credit. Closing these accounts can actually reduce the overall amount of credit you have, lowering your score in the process.
Be On Time With Bills
Another great piece of advice is to always pay your bills on time. Whether it’s a cell phone bill or an electricity bill, having a record of paying on time boosts your credit score. After all, potential lenders are interested in seeing what your payment records look like, so if you can show them that you’re responsible, that’s the way to go. Our advice is to utilize the autopay feature of your accounts when available to ensure that you’re always paying before your bill is due.
We’re Your Go-To Mortgage Company
As we mentioned above, every situation is a little bit different. If your goal is to improve your credit score so you can get the lowest mortgage rates possible, we’d be happy to offer advice on a case-by-case basis.
Our priority is always first and foremost to make your experience as simple as possible. We know that mortgages can be intimidating, but at Scout Mortgage, we pride ourselves on offering friendly, honest, and reliable assistance throughout the entire process. Whether you’re searching for your first home or you’re thinking about refinancing your mortgage to take advantage of the current low rates, our team is here to lend a helping hand.
Contact us today to get the process started and rest assured that when you work with our mortgage consultants, you are in good hands.