At AKAL Mortgages, we pride ourselves on being able to help people in all sorts of credit situations. But let’s not kid ourselves. The better your credit score is, the better your options are going to be for getting a mortgage.
So how can you manage your credit score in 2019? Here are a few of our top tips!
Get your credit score at least once a year.
Not every credit score problem is your fault! Credit bureaus can and do make mistakes and many people can and do have their credit damaged because of identity theft. Unfortunately, most people remain unaware of these issues until the time comes when they have to apply for credit. By getting a copy of your credit report on at least an annual basis, you’ll be able to monitor for these types of problems.
Don’t cancel your credit cards.
It can be tempting after paying off a big balance to simply cancel a credit card. But this can hurt your credit score because your score depends on you having open lines of credit. Instead, keep the card locked up and use it at least once a year.
Pay on time.
Late payments – especially on large loans like car loans and mortgages – hurts your credit score. Make sure that you are not only paying at least your minimum balance, but that you are also paying on time. Consider making your payments electronically in order to avoid mail delays. And if you do want to pay by mail, you should send in your payment at least a week ahead of the due date.
Keep balances low.
If your balances are more than 50% of your available credit on that line, it could hurt your credit score. Keep your balance on each account and spread your debt over several accounts in order to keep your balances low.
Keep credit inquires to a minimum.
Did you know something as simple as a potential lender checking your credit can actually harm your score? With this in mind, don’t apply for too many credit cards or loans within a short timeframe.
If you would like to talk to us further about how to manage your credit score this year, or if you have questions about applying for a mortgage – with good credit or bad – contact us today!
When we say YES! We stand behind our promise.®™
