Here are some ideas to help on your home ownership journey!
Mortgage lenders use a credit score (most often called a FICO Score) along with other factors, such as your debt to income ratio, employment history, and credit history to determine your credit worthiness. To improve your credit rating, DO the following:
DO pay your bills on time. If you missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score.
DO correct any errors on your credit report. This is a fast way to raise your credit score.
DO reduce any high balances on credit cards. This is also a fast way to improve your credit rating. Pay balances down to below 50% - you do not have to pay them off in full.
DO contact your creditors or see a legitimate credit counselor if you're having trouble paying bills. This won't improve your credit score right away, but if you start paying on time, your score will eventually improve.
DO keep balances low on credit cards. Lots of outstanding debt can hurt a credit rating.
DO use credit cards, but manage them responsibly. Having cards and installment loans and paying them on time will raise your credit score. People with no credit cards are usually a higher risk than people who use their credit cards properly.
DO call or email us for help. We'll gladly take you through the ins and outs of all things "credit."