Your credit score is a major factor in whether or not you’ll be able to qualify for a mortgage. As a homebuyer, your credit score will positively or negatively affect your loan options, interest rates, mortgage terms, and how much house you can afford.
Whether homeownership is something you’d like to achieve in the next 6 months or the next few years, the benefits of checking and building your credit will majorly pay off in the long run.
Here are 6 step actionable game plan to improve your credit score, build a strong financial future, and prepare for homeownership:
STEP 1: Check your credit score by using your online banking app!
STEP 2: Pay your bills on time and don’t miss a payment! If it’s possible, pay more than the minimum amount due each month.1
STEP 3: Keep your credit utilization low. Spend as little as possible on your credit cards and pay off your balance as soon as possible
STEP 4: Focus on paying off your accounts with the highest interest rates first
STEP 5: Fix errors on your credit report if necessary.
STEP 6: Don’t open any new lines of credit or close any accounts.