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Buying a Home in Peoria, AZ: How to Improve My Credit Score Fast

Dated: July 12 2022

Views: 39

Your credit score tells your mortgage lender how responsibly you use credit. The better your score, the more easily you can be approved for a larger home loan. Besides, a higher score also opens the door to the lowest interest rates when you borrow. However, if your credit score is low and you’d like to improve it, there are a few simple things you can do:

Clean up Your Credit Report

Did you know that over 34% of homebuyers will find mistakes in their credit reports? Unfortunately, even small mistakes like a mistyped address could affect your rating and might be enough for a lender to reject your mortgage application. So, get a copy of your credit report from the three national credit bureaus - TransUnion, Equifax, and Experian - through the official AnnualCreditReport.com website. Review the reports and if you spot a mistake, contact the credit bureau in question.

Pay on Time

Your payment history is a crucial aspect in determining your score, so having a long history of on-time payments will help you achieve a better credit score. To ensure that you pay bills on time, set up automatic payments for the minimum amounts due, and if you’re behind on any bill, you should make the late payments as soon as possible. While late payments can remain in your report for up to 7 years, having all your accounts current can help you achieve a better credit score faster.

Aim for Less than 30% Credit Utilization

Credit utilization is the portion of your credit limit that you’re utilizing at any given time, and it’s the second-largest factor in your credit score. So, you should weigh your balances relative to your limit to make sure you aren’t using too much available credit. You may also consider repaying more than your minimum payment each month. Chipping away at your revolving debt can help keep your credit utilization low and, consequently, improve your credit.

Improve Your Credit Score Today!

Credit scores are crucial - the higher your rating, the better your chances of being approved for a mortgage and at better terms and rates. If you’d like to learn more about credit scores when buying a home in Peoria, our team of real estate experts can help - give us a call now!

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Chris Collins

Chris Collins            Representing homeowners and future homeowners in Arizona, Chris is committed in listening to the needs of his clients an....

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