If you’re thinking about buying a house, you have to check your credit scores. When it comes to purchasing a house your credit is very important. If your credit scores are bad it could be your obstacle to buy a property. Nowadays homeowners carefully figure out buyers’ credit and be reluctant to approve a loan for people with bad credit scores. It also impacts interest rates on your loan. Then how can we boost credit scores? Here we have 7 tips to improve your credit scores.
- Check your credit report now. You can get your report from the three major credit reporting agencies once a year. (Experian, TransUnion, and Equifax) You can also get one from AnnualCreditReport.com.
- Read over the report carefully to see if all information is correct. If you find any error get them fixed. You can dispute errors online through those major credit agencies.
- Be on time. If you want to increase the scores, pay your bills on time. Never miss a payment and don’t make for partial payments. Paying on time and in full will have a positive impact on your overall credit scores.
- Keep balances low on credit cards. Don’t use your credit card to pay everything. Avoid carrying a balance over 50 percent of your limit on each card. Even 10 % credit utilization ratio will still maximize your credit scores.
- Use existing card. If you don’t have a credit card it’s good to have one or two credit cards. However if you already have one don’t open a number of new credit cards that you don’t need.
- Mix it up. Obtain multiple kind of credit. 10 percent of your score is based on the types of credit you have. For example, you can buy a small product on installment or an auto loan will build credit too. Keep that in min you should meet the payment schedule!
- Big purchases? Not now! If you are planning to buy something expensive on credit you’d better do next time. Avoid any big changes your finances before buying a house. It could be a car, fancy vacation etc. Wait till you get an approval a loan.