We all dream of having our own house. It’s in everyone’s bucket list. But the road in owning a house is never easy. It will take many documents, processes, and of course, money, before you can finally have the house of your dreams.
Part of the process is the credit score. Credit score pertains to the there-digit number that came from your credit report. It’s one of the basis for banks or lenders on whether or not they should give you money for mortgage. Credit score reflects your financial capability and responsibility.
Want to know the ways in which you can improve your credit score? Then don’t worry. Below are the top notch ways in which you can improve your credit score and get the house that you want.
1. Check your credit report
The first thing that you have to do is to check your credit report. Take note of your current credit score and start from there. Reassess what the report is saying so that you can immediately make a call when you see an error.
2. Payment reminders
Sometimes, we forget to pay our bills on time because we are too busy with our own lives. Fortunately banks can set up payment reminders that can help you remember the last bill that you created. Banks offer reminders from email to a simple text message.
3. Pay your bills, on time, anytime
So you used your credit card pretty often. That’s no big deal as long as you’re paying it on time and regularly. The way you pay your credit card bill is always reflected on your credit report so make sure that you have been a good borrower and not a naughty one.
4. Amounts owed
Be mindful on how much you owe. According to research, 35% of your credit score is based on the amount that you owed. The tip is to not create loans that you cannot afford. If you think you can’t control yourself on the spending department, simply call your bank and tell them to increase your credit card limit.
5. Keep your balances low
Having a low monthly balance shows lenders that you are responsible when it comes to paying your bills.
6. If you had problems before, start anew
Open a new account if you need to reestablish your credit score. Create a new one and start paying bills on time and the magic will surely surge on.
7. Keep old accounts open
Thinking about closing those old accounts? Not so fast. It is important to keep your old accounts open because part of the credit score comes from the analysis of those old accounts.
8. Pay off student loan
Pay off your student loan before venturing into getting a home loan is a wiser and more responsible idea.
9. Pay your parking tickets and library fines
Yes, even these simple factors can affect your credit score. A collection of these simple fines can lead to a bruise on your report.
10. Make realistic goals
We all know that perfecting your credit score is near impossible. Set out goals on the type of score that you want to achieve and simply focus on it.
Go get the property that you want by being financially responsible!