A high credit score and good credit history are both important to have a smooth home-buying process.
If you're planning on buying a house, now is the right time to work on improving your credit.
To help you with that, here are some tips on how to build your credit score.
- Open A Secured Credit Account. If you're building credit from scratch, it's better to start with a secured credit card. A secured credit card is backed by a cash deposit you make upfront.
- Keep Your Credit Utilization Low. Use your cards to make frequent small payments as credit utilization is a big factor in your credit score. However, it is advisable to keep your credit utilization below 30% on all of your cards.
- Pay On Time. Late payments could reflect on your credit history for seven years! Prevent that from happening by paying on time, every time.
- Avoid Closing Your Account. You might think that closing your financial account will help boost your credit score. But that is not the case. As long as they are not costing you annual fees, keep unused accounts open. Closing your account could increase your credit utilization ratio, thus lowering your credit score.
A credit score is just one of the things you need to consider when buying a house. The whole home buying process can be a daunting task. Ebenezer Mortgage Solutions can help.
Let our mortgage brokers do the hard work.
Call us today at 813 - 284 -4027.