Are you thinking about buying a home and need to get a pre-approval from a lender? One of the first questions from the lender, is how is your credit score. Your credit score may affect the interest rate you are offered from a lender and the ability to obtain a loan in the first place. Here are six easy tips to keep in mind to help you keep up or improve your credit score:
1. Keep your credit card utilization at or below 25-30%.
2. Make sure you're keeping track of your credit score from all 3 bureaus: Equifax, Experian & TransUnion.
3. Make your payments on time! Late payments can really effect your credit score, so make sure you're paying the minimum balance on time, every month.
4. Don't close out your unused accounts! Credit length is a big factor in raising your credit score. When you close out old accounts, you erase that length in credit.
5. If you don't have a credit card, get one! You can't have good credit if you don't establish that you can borrow money and pay it back on time!
6. Ask for a higher credit limit on your card (even if you don't "need" it). This allows you to have a lower credit utilization overall, which helps your score!
