If you’re planning on applying for a mortgage, you should be aware of what lenders typically look for in terms of an applicant’s financial health. For example, they will likely look at your income, assets, down payment, employment history, and credit score.
So, while your credit score isn’t the only thing lenders look at, the higher your score is, the lower your interest rate may be. This can translate into huge savings long term!
If your credit score needs a little (or a lot) of help, check out these tips on how to improve it:
Try to pay down your credit cards and other debts. Basically, the less you owe, the better.
Pay every bill on time. Late payments make you look like an irresponsible borrower (which you basically are if you pay late - sorry).
Don’t apply for any new credit cards or loans. Doing so can make your score go down, which you don’t want.
Don’t close any of your accounts. One of the reasons for this is that decreasing your length of credit history can ding your score.
For more information about credit scores and how to improve yours, check out this article.