Key Takeaways:
– Minimum credit scores for different mortgages range from 500 to 700.
– Higher credit scores lead to lower interest rates.
– Pay bills on time, keep credit card balances low, and consider becoming an authorized user to boost your score.
1. Check Your Credit Reports and Scores:
– Obtain reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com. Review them for errors and dispute any inaccuracies.
2. Pay All Your Bills on Time:
– Keep all accounts in good standing. Late payments can stay on your report for up to seven years and can significantly impact your score.
3. Reduce Your Credit Card Balances:
– Aim for a credit utilization ratio below 30%. Paying down balances can improve your score quickly.
4. Avoid Opening New Accounts:
– Applying for new credit can temporarily lower your score. Avoid new applications before and during the mortgage process.
5. Get Help from a Responsible Credit User:
– Becoming an authorized user on a trusted person’s credit card can improve your credit history.