Your credit score affects everything you do these days – from buying a house, refinancing a mortgage or even getting a job, your credit score counts! So, it’s important to do what you can to make sure it’s a higher number. But how do you do that? Try these 5 Tips For Getting A Better Mortgage Rate!
1. Pay your bills on time. It’s important to pay your bills on time every month. Even just a day late can affect your credit score on some things – from credit cards to mortgages. Most banks allow you to set up Bill Pay where you can schedule all your monthly payments in advance to ensure you’re not late!
2. Know your credit score. Use free services like Credit Sesame to keep an eye on your credit score each month so that can begin to see it improve and get real time alerts when changes occur on your account. Use their credit monitoring program to get notified of any changes to your account.
3. Pay down your existing balances. Get those credit card balances down as much as you can. Having a high debt-to-income ratio can affect your score and rates you can get for your mortgage or car loans. Try the “snowball” method to get them down quick. List your cards from least to greatest. Throw all your extra money toward the smallest balance until it is paid off and work your way up. It’s a great way to see improvement fast and motivate you!
4. Check your credit report for mistakes and identity theft. Nobody wants to think it will happen to them, but it can! Identity theft can wreak havoc on your credit report that will take time to fix. Get a free credit monitoring service to keep track and catch theft early!
5. Don’t apply for numerous cards. Your credit score takes a hit each time you apply for credit. Having too many cards can affect your score as well. Give your cards a rest while you focus on paying your bills on time, paying down your debt and monitoring your account. Before you know it you’ll have a great credit score that will qualify you for better rates for your new home mortgage.
* This is a sponsored conversation from Credit Sesame.