Improving credit for a lower rate

Applying for a mortgage is no small task. Learn how to make the best use of your
time by making an informed decision about choosing a mortgage option.

CREDIT HEALTH QUIZ

How’s your credit health?

Applying for a mortgage is no small task. Learn how to make the best use of your time by making an informed decision about choosing a mortgage option.

Top 5 Ways to Improve Your Credit Score, Today

There are three areas of your credit report that impact your score the most (negatively or positively):

Debt
to income
ratio

On-time
or late
payments

Age of
oldest credit
account

There’s a number of ways you can improve your credit score in the short-term and in the long-term.  Time is the most passive healer of your credit health, so as time goes on (as long as you’ve practiced healthy credit habits) you will notice your score improve with little effort.  Meanwhile, here are ten ways to improve your credit health today or in the near future:

The fastest way to improve the debt-to-income ratio is to simply increase your income. You can update your income with credit reporting agencies and this will help lower your debt-to-income ratio and improve your overall score.

Got some spare cash? Make above the minimum credit or debt payment you’re asked per month. Even a few dollars looks good to creditors, so don’t be shy about how little or how much you pay more per month.

You can do this either by 1) Paying down your overall debt to 28% or less or 2) Paying down as many credit cards as you can to 28%.  Either way is fine, but some financial gurus recommend one option over another.

Sometimes a low credit score is less about poor credit habits and more about a lack of a credit history (length and number of accounts). Get a credit card through a family member, such as a parent or a spouse, by having them add you as an account holder/user. But make sure that your trusted partner has a good credit score – otherwise linking up with them will do more harm than good to your credit score

Set your budget up so you can make monthly credit card or debt payments early.  This will provide a safety net in case a payment change (automated payment, etc.) occurred unbeknownst to you and you’ll have some cushion to make the payment without it being reported to credit bureaus. 

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