Mortgage rates are expected to continue climbing higher, consider making moves to lower your credit score so that you to can take advantage of the best rates available. Here’s what you can do.
  1. Check your credit report, this is essentially a history of your credit activity and includes payment histories, credit card balances and other debt. A number of factors on that report help determine your credit score. Traditionally, you are allowed 1 free credit report a year from the three main credit scoring companies: Experian/ Equifax/ TransUnion. You can reach out to each directly or visit there website.
  2. Pay your Bills on time. Late and missed payments can knock down your score. Be consistent in paying your bills on time to improve your credit.
  3. Lower your credit utilization rate; All mortgage lenders will look to see if you have high balances on credit cards. Even if you pay your credit card bills in full each month, you may still have a high utilization rate. Making an extra payment in the middle of the billing cycle can help knock the balance down before the statement comes out.
  4. Consider a credit builder loan; Some community banks and credit unions offer credit-building loans, these are loans designed to help the loan holder establish good credit as they make timely payments.
  5. Watch for credit inquiries; If you are looking to purchase a home, hold off on any other big-ticket items, like a car, furniture and other big price tag items. Also, don’t open new credit cards or new lines of credit, which will result in more inquires for your credit sore. The higher level of inquires the higher the interest rate!