Tips To Increase Your Credit Score For A Mortgage

Mortgage lenders are very strict when it comes to evaluating the borrower’s ability to repay for the home loan. You need to have a good credit history and a higher credit score to secure a mortgage. Sometimes lenders may approve your mortgage even with a lower credit score but charge you higher interest rates, which are very expensive to manage if you are not financially stable. You will, therefore, need to increase your credit score to secure a mortgage at a lower interest rate.

 

 

Tips to increase your credit qualification for a mortgage

•    Pay your credit card balances
The rate at which you utilize your credit cards accounts for about 30% of your credit qualifications. There higher credit card balances significantly relate to a lower credit score. It is thus a good idea to pay your credit card balances to raise your credit scores to secure a mortgage at a lower interest rate. 

•    Pay for delete
Your credit history will profoundly impact your credit scores. If you have any collections in your credit account, then you can ask the agencies if they could remove the account on payment of an agreed amount of money. Remember paying for delete of your collection accounts does not necessarily increase your credit score but instead maintains a good credit history to help you secure a mortgage.

•    Be an authorized user
You can include your name in the credit cards of your family or a close friend to become an authorized user of the cards and hence improve your credit history.  However, credit cards should be used frequently while maintaining lower credit balances. Having a good credit score will definitely help you get approved for the loan. However, you also need to maintain a good credit history as that too contributes to the approval of the mortgage. Consider the above tips to increase your credit qualifications for a home loan.