Your credit score is perhaps one of the most critical factors for your mortgage rate and eligibility. However, many Americans have fallen into financial traps that negatively impact their credit.
Here are five easy ways to improve your credit score.
1. Correct Any Errors
It may seem unreasonable, but there could be errors made by the credit bureaus that are impacting your score in a negative way. The best way to identify any of these errors is to check your credit report often and make sure to examine it closely to catch these errors. If it goes unnoticed, then you may put yourself in a worse position for receiving a loan.
2. Don’t Miss Any Payments
Your payment history is easily one of the biggest factors in your credit score. Missing as little as one payment can negatively impact your credit and create a hole to dig out of. While having autopay on may be daunting to people, it is the simplest and best way to ensure that you are making any and all payments.
3. Pay Off Your Debt
A majority of Americans hold some sort of debt. Whether it is student loans, credit card debt, or personal loans, it impacts your score. It is imperative that you work on paying off that debt as a way of improving your credit situation. Whether you choose to pay off the biggest or smallest debts first, it doesn’t matter.
4. Keep Balances In Check
It’s important to use your credit and pay it off. However, just because you have a certain amount of credit does not mean you should use all of it. 30% is generally regarded as the magic number in this instance. It may be tempting to spend more when your amount of credit increases, but staying consistent is the smartest thing to do.
5. Look At Your Credit Report
How often do you look at your credit report? Looking at your credit report is a great way to understand how your habits impact your score. It’s also the best way to detect any errors that have occurred.
About AdvantageFirst Lending
AdvantageFirst Lending is the preferred lender when it comes to Cash-Out Refinancing options and saving you money on your monthly mortgage payment. Customer support is key in any home financing transaction, and our loan officers here at AFL provide the best in the business. For more information visit our website and follow us on Facebook and Instagram. Also, be sure to check out our reviews on Zillow.