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How To Improve Your Credit Score For Mortgage

How can I improve my credit score to qualify for a mortgage?

Credit is one of the most important factors when qualifying for a mortgage.  Many loan programs have minimum credit requirements for loan approval.  Furthermore, higher credit scores often translate into better interest rates.  Even if a mortgage company will approve a mortgage for an individual with a lower credit score, the borrower is often stuck with a less-than-desirable interest rate.

How To Improve Your Credit Score For Mortgage

How To Improve Your Credit Score For Mortgage

Below are tips:

  1. Pay down credit card (revolving) debts to below 20% of the high credit limit.  This means if the high credit limit on your credit card is $1000, then try to only use up to $200.
  2. Paying off high credit balances is often the fastest way to improve credit
  3. Pay current installment debts on time.
  4. Don’t open new credit
  5. While it’s important to establish credit, opening new credit doesn’t necessarily help your credit score in the short run
  6. Collections and judgements create a drag on your credit score and can make it hard to improve your score.  That being said, addressing collections or judgements can have a negative effect on your credit score

Think about a mortgage or ways to improve your credit score for Mortgage?  Contact Timothy Lee here for the latest information on programs that may benefit you.

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