Credit Score Matters!

Credit score can play a major role when trying to qualify for a home. Here are some helpful tips to keep your credit score in check! If you need more assistance, we would be happy to connect you with a reputable lender that can help you out!

A credit score is based on five main areas:

1) The timeliness of payments

2) Credit card utilization

3) New lines of credit opened 

4) Variation of credit

5) Length of credit history 

These different categories affect your credit in different amounts, but to stay positive across the board try avoiding these major mis-steps.

Don’t

• Close account’s. If you have a credit card you don’t use, use it occasionally, pay it on time, and keep it in a safe place.
• Pay off auto/installment loans to boost scores. This money may be better spent elsewhere.
• Futilely make large payments.  The balance carried on a credit card can have a HUGE impact on score, however making double payment simply to improve the score is pointless and would have no impact in and of itself.
• Max out your credit cards or miss payments.

If you are ready to buy a home, give me a call so that we can get you qualified and begin your search for the perfect house! If you are thinking of buying in the future, now is a great time to start building your credit so that when the time is right, you are ready to move forward!