Get Your Credit Score Mortgage-Ready in Months

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A mortgage shouldn’t be an unobtainable dream. One of the easiest ways to achieve your dreams is by improving your credit score. You don’t need to take years and years to build your credit history. You can improve your credit score quickly, sometimes even within a few months. Here are the first steps that you should take.

Begin by Pulling Your Credit Reports

You’re entitled to pull a credit report once a year from each of the three major reporting bureaus. That means you can pull your report once every four months. You do not adversely impact your credit score when you pull your own report. You should do it as a habit to protect yourself from identity theft.

Dispute Any Errors to Your Credit

Credit agencies are not infallible. In fact, many of them can have errors, such as accounts that are reporting the incorrect balance. You can improve your score quickly and easily by disputing errors on your credit.

Some common errors include payments reported as late when they weren’t, credit accounts opened in your name, or lines of credit reported improperly. Check everything against your actual statements to make sure they’re accurate.

Pay Off Any Debts

If you’re thinking about getting a home soon, you’re probably saving up money for a down payment. That money may be better off paying some debts. Paid-off debts improve your credit score, which will improve the rates that you get for your mortgage. Many mortgages now have fairly low requirements for down payments regardless.

When paying off debts, you should prioritize the lowest debts first, as well as the debts that have the highest interest rates. Ideally, you want to reduce the number of debts you have as well as the amount of total debt you have. This will also help you qualify for a mortgage, as many mortgages have a specific debt-to-income ratio that you need to meet.

Increase Your Lines of Credit

It may seem strange, but increasing your lines of credit can actually improve your credit score. Your credit score looks at utilization ratios, so if you’re using 90 percent of your available credit, it will seem as though you’re the type of person who needs to max out their cards. If you increase your credit lines, you could be using only 60 percent of your credit. That percentage proves you’re more responsible.

You can increase lines of credit by calling your credit card companies and ask them if they can approve a credit line increase. Often they can approve at least a modest increase, which you can acquire over all of your cards.

Get Added to Other Cards

Being added as an authorized user to another person’s cards, such as a partner or a parent, can improve your credit rating by associating you with an account in good standing Often his account will report as though it is one of yours, which will show as a credit line that you have. However, if the credit line becomes delinquent, it will also hurt your score. If you’re going to do this, you need to ensure that the account will be used correctly.

Open New Accounts

Finally, you may want to open some new accounts if you qualify for them. Temporarily, a new account will lower your credit score because it will show as new credit procured. This is very temporary, though, and you’ll quickly see your score increasing as long as you pay off the balance in full every month.

Are you thinking about getting a mortgage soon? You can do a lot of things to improve your odds, from reducing your debts to looking into alternative mortgage programs. To get more information, continue to follow the experts at Homemortgage.com.

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