Mortgage News

Here’s how to increase your credit score before apply for a mortgage:

1. Pay your bills on time. 
An on-time payment occupies large proportion in your credit score. Pay in full on or before your due date, and you can build a good credit history.
2. Manage your credit card. 
For example, if you have credit lines totaling $5,000 and your credit balances total $1,000, your credit utilization is 20%. In general, you use as little of your available credit as possible.
3. Don’t close old accounts. 
You might think that closing a credit card account is the way to go when trying to fix your credit score, but this often isn’t the case. An old account, especially if it’s in good standing, can help your credit. The longer your credit history the better your credit score.
4. Use different types of credit. 
If you have a few records in your past, there isn’t much for lenders to make a judgment about. A mix of revolving credit (like credit cards) and installment loans (like car payments or student loans) can show that you can handle different types of debt.