Frank Valente - Roseville Real Estate

Fast Credit Score Fixes For The Best Mortgage Rates

Your Credit Score Can Cost or Save You Thousands

Getting the best mortgage rates relies on your credit score, and lenders are digging deeper than ever into homebuyer’s credit reports, credit card spending, bill paying consistency and debt-to-income ratios. While there are no quick fixes to erase blemishes, there are things that can be done to start improving your credit score immediately and dramatically.

1) Pull your credit score – Know your exact credit score and determine whether any wrong information has affected it. Approximately one-third of consumers have errors on their credit report. Make sure the corrections are made before applying for a home loan. This should be done three months before applying for a mortgage.

2) Pay down your debt – You need to show lenders you can manage credit responsibly before you take on a mortgage.

3) Target credit accounts that matter most to lenders – Major credit cards are by far the most important, do not forget about store credit cards. Expect payments for doctor’s fees, utility bills and home equity lines to be looked at as well.

4) Piggy-back on good credit, married couples can start anew when buying a home – Utilize the good credit of a significant other, a relative or a good friend, get added to a credit card as a joint account holder. As payments continue to be made on time, your credit score will increase. Use secure credit cards, arrange for lender to report your payment history to the credit bureau.

5) Attempt to increase your existing credit limits, don’t open new accounts – Avoid starting new lines of credit. Your score can actually benefit from increasing your credit limits.

6) Don’t continue to pay bills lat, especially your mortgage payment – Starting to pay your bills on time can start to correct your credit score. Approximately 35% of your credit score is based on whether you pay your bills on time. You just have to meet the minimum by the due date.

** Information for this article was taken from AOL Real Estate

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