Your credit score is critical for your financial success. It affects your ability to get loans, including a mortgage and car loan, and is the main factor lenders look at to determine how much interest you’ll be charged. To help you raise your score as much as possible, Fairway Independent Mortgage Corporation is here.
They’re a residential mortgage solution for residents of the greater Minneapolis, MN, area, and below are their tips for improving your score and getting your credit back on track:
- Check for Errors: You can request a free credit report every year, and for a small fee, see your credit score as well. Once you receive your credit report, it will come with an outline of accounts and payments. Some mistakes can negatively affect your score, needlessly raising interest rates on mortgages and other loans. You can dispute them to get them fixed and remove penalties.
- Pay on Time: Pay bills on time, as even a slightly late payment will negatively impact your score. For payments that are late, prioritize accounts with the highest interest rates. This will help you pay down the amounts while increasing your overall score. The higher your score, the lower your mortgage rates will be, along with rates for other types of loans.
- Keep Balances Low: The lower you keep your account balances, the higher your credit score will be. It demonstrates that you can budget responsibly and aren’t taking on more debt than you can handle.
- Don’t Open New Credit Cards: Opening new credit cards when you’re having trouble paying your old ones can decrease your score because it will look like you’re trying to take on more debt when you already have more than you can handle.
Still have questions about your credit score before you start the home-buying process? Call Fairway Independent Mortgage Corporation at (952) 797-6032 or visit them online. Whether you’re looking for information on refinancing or current mortgage rates, one of their residential mortgage experts can give all the information you need to get approved for a home loan.