It can be one of the hardest subjects to talk about, and one that many Americans tend to avoid. However, knowing what your credit score is and how to maintain it is vital to becoming a homeowner.
While Experian estimates 30% of Americans have poor or bad credit, plenty of people have no credit at all, which has similar disadvantages to having low scores.
Take the time now to begin building and maintaining your credit so when you go to apply for a home loan, it’s not an issue to overcome. Here are some simple tips to follow when maintaining your credit score:
Pay On-Time
Pay your bills on time, especially mortgage or rent payments. Apart from extreme circumstances like bankruptcy or tax liens, nothing has as much of an impact on your credit as a history of late payments.
Don’t Overspend
Don't max out available credit on credit card accounts. This indicates you're having problems managing your finances?
Keep Requests Down
Don't apply for too much credit in a short amount of time. Multiple requests for your credit history (not including requests you make to check your own status) can have a negative impact on your score.\
Pay It Off
Reduce the amount of debt you owe. On credit cards, keep your credit balance below 50% of the available credit amount to maintain your credit score, or below 30% of the available limit to improve your credit score.
Check It Out
Periodically check your credit history for errors. If you would like a free copy of your credit report, please contact me!
If you’d like a more in-depth strategy of how to build your credit or are interested in seeing if you qualify for a home loan now, give me a call.
