If you’ve been doing research on how to qualify for a mortgage, you’ve probably already known by now that keeping a good credit score is one of the
important factors that would help you land one easily. And while there are a lot of tips and tricks over the web about credit score management, learning will always be a never ending process.
And because learning is constant, let’s round up the best practices from experts that might be helpful when you try to boost your credit score.
Be on time.
Fulfilling our financial responsibilities in a timely manner keeps our credit in good shape. In fact, missing even one payment can pull your score down. Just remember to keep your debts manageable so that you can easily make your payments on time.
Be aware of your spending habits.
Know where your money is going. And as for credit cards, don’t put your spending close or over the limit. Experts even recommend to only spend 30% of your credit limit. Identify a “need” between a “want.” Try not to give in to temptation or go on an impulsive shopping spree.
If it’s really hard to lessen your spending habits, you can request your credit card company to raise your limit. Also, paying your balances more than once in a month can positively affect your score.
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Try to maintain a low balance.
If you can keep your balances low, it means you can possibly be able to afford to pay your credit card debts in full and also avoid your interest from revolving. People with satisfactory credit scores try to turn away from incurring costs from interest and keep a good credit score.
Choose credit cards carefully.
Choose a credit card account that fit your needs. Credit cards with a useful reward system can complement your spending habits as well. Also, make it a point to check your spending limit so that you are aware if you’re getting closer to the edge. Smart credit card
usage is crucial. If building good credit is your purpose, maybe a secured card is for you. These cards usually require a deposit and keep your spending in check. If you know that whys and whats of applying for a credit card, this would making choosing easier.
Habitually monitor your score.
It’s possible to regularly get a report of your score. Other than knowing what needs to be improved, this helps you point out any inconsistencies and could dispute them, should there be any. Regular monitoring is also advisable especially if you are planning on applying for a home loan, car loans, and any other loan types that require a credit score check.
Managing and improving your credit will not be a walk in the park. In fact, each situation differs from the other. Ultimately, it’s best if you look into your situation and see what needs to be done as you move forward. But these tips are some of the practices that are easy to apply and in time, you’ll see it pay off in the long run.
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