If you’re planning on buying a house soon, it’s wise to start improving your credit now. Even if you have a relatively good score, bumping it up to a high score will ensure you get the best interest rate possible on your mortgage. Here are some of the most effective ways to boost your score before applying for a home loan. 

3 Tips for Improving Your Credit Score

1. Stick to a Budget 

The single most effective way to improve your credit score is by making on-time payments every single month. To ensure you never submit a late payment, devise—and then stick to—a reasonable budget that accounts for the minimum monthly obligation of every debt you carry. 

2. Reduce Credit Utilization

Credit utilization refers to the ratio of revolving debt to available credit. Maintaining a credit utilization of between 1% and 10% will yield the highest score because it shows lenders you know how to borrow responsibly. There are two ways to reduce total credit utilization: by paying down revolving debt and by securing—but not using—additional credit. 

3. Dispute Any Errors

It’s essential to review your credit reports from all three bureaus before you apply for a mortgage. If there are any inaccuracies on these reports, you must file a dispute so that you can remove them. Depending on the nature of such errors—which are more common than most consumers realize—having them removed will improve your score significantly.

Once you’re ready to apply for a mortgage, turn to Dan Main. Based in Saint Peters, MO, this knowledgeable loan officer has more than two decades of experience in the financial field. Whether you’re a first-time homebuyer interested in taking out a VA loan or you want to purchase a vacation home with a conventional mortgage, he can help. To start your application, reach out online or call (636) 284-4144. 

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.