3 More Simple Tips For Boosting Your Credit Score Before Shopping Your First (or Next) Mortgage.
Updated: Mar 21, 2021
3 Tips Boost Your Credit Score Before
There are a variety of factors that are involved in getting your mortgage approved, but aside from having a down payment, few things will have more of an impact than your Credit rating and the credit history that goes along with it. Instead of leaving your score up to chance nd crossing your fingers when submitting your application, here are a few ways that you can boost your financial wellbeing and make your credit score better off than it was before.
Put More On Your Card
It's important to put purchases on your credit card that you can afford to pay off consistently, but many people are not aware that the amount of debt they owe can actually positively contribute to your credit score. While it's good to use up to 30% of your available debt load, a significantly higher percentage than this can be a signal to lenders that you are experiencing financial difficulties. By putting everyday items on credit, and paying them off regularly, a hopefully borrower can quickly give your score an instant boost.
Clear Your Credit History
Many people who think they have bad credit are too afraid to even review it, but it's very important to take a look at your credit history when it comes to taking control of your finances and your credit score. If there happens to be incorrect information on your credit report, this will enable you to contact the appropriate lenders and dispute the charges so they can be corrected prior to your mortgage application. It may not seem significant, but this can actually have a marked impact on the outcome of your application.
Make Your Minimum On Time, ALWAYS
It's often the case that those who are struggling with debt may push away the bills altogether and give up on the minimum payment, but it's very important that the minimum is made to keep your financial health in check. It may take a few months to see the results of putting down this amount before the due date, but it will improve your credit over time and forge good habits for the future. A fool proof way to insure you always make your payment is to set up an automated payment each week or month of $20-$50 dollars. This will normally be enough to cover your minimum payment due and once its set-up you can check that off your list forever.
Your credit score is an important aspect of determining your financial health for lenders, and this means that your credit history is of significant importance when it comes to your mortgage application. Instead of leaving it up to chance, ensure that you are making the minimum payments and correct any discrepancies in your credit report. If you are currently on the market for a home and are considering your options, you may want to contact one of our mortgage professionals for more information.
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Doug Paterson, Mortgage Agent
Dominion Lending Centres.
416.432.8836 | www.dougpaterson.ca