• Mortgage

4 Ways To Have Excellent Credit As A Homebuyer

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Brenda Jacobson

VP / Real Estate

Having a good credit score makes getting a mortgage easier AND can decrease your monthly payments by qualifying you for a lower rate. Finding ways to maintain a good score or increasing a lower one can seem like a total mystery at times. That’s why we’re highlighting 4 of the best ways to make sure you have a great credit score to make home buying easy and stress-free.

Credit Score "Must-Knows"

Start By Establishing Credit

Make sure you have credit that will report on your credit bureau report.  These include installment loans (student loans and vehicle loans) and revolving payments (credit cards or lines of credit). 

 

Did You Know?

If you pay off all of your debt and close your credit accounts, you will lose your credit score after 6 months! In most cases, you should keep your accounts that have had no late payments open to maintain a score.

Pay On Time, Every Time

Never pay a bill more than 30 days late. One 30-day late payment can drastically affect your credit score. 

According to a 2019 Credit Debt Survey conducted by NerdWallet, 35% of people said they missed a payment simply because they forgot. Set up automatic payments with digital banking to help avoid that happening.

Keep Balances In Check

Don’t exceed more than 50% of your credit limit. For example: If you have a credit card with an available credit limit of $10,000 do not exceed charges of $5000 at any given time. Doing so can hurt your credit score.

Protect Your Credit

Avoid having your credit history pulled. Try not to sign up for credit cards at stores that offer you a discount or sign up bonus. Adding too many new lines of credit at one time can reduce your credit score and have a major impact in the long run.

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