10 Ways Houston First Time Home Buyers Can Improve Their Credit Scores
Design by Diana Walton- Houston First Time Home Buyer Specialist
Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
Buying a house is a very big deal. Getting there is not always easy. One way to get to the finish line, is to make sure your credit scores are where they need to be. If your credit scores are a bit on the low side, here are 10 ways you can increase them.
Make sure your credit report is accurate.
Pay your bills consistently on time.
Pay more than the minimum.
Reduce or pay off balances on credit cards- debt to income is crucial when buying a house.
Do not close your oldest account- length of account does matter.
Become an Authorized user - this can help build and or increase your scores quickly.
Refrain from applying for Multiple lines of credit at once - these inquiries are hard pulls and can hurt your score.
Maintain a variety of credit. Example, auto, credit card, bank loan is a good mix and does represent about 10% of your credit score.
A secure credit card can help to establish and or improve your existing line of credit, thereby increasing your scores.
Monitor your credit. Keep it locked if you must.
Your credit score can have a major impact on your finances and your life. Having low scores will make it difficult for you to get a mortgage loan and if you do, you will pay dearly by way of higher interest rate.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
