Having a good credit score plays an important role in securing a mortgage.

Here’s some quick tips on how to improve one’s credit score, feel free to share!

1: Pay bills / credit on time.

Even if that means just making the minimum payment.

Always pay at least the minimum amount due by the deadline. Timely payments are crucial for maintaining a strong credit score.

2: Monitor Your Credit Utilization

Keep your balance below 50% of your credit limit. Ideally, aim for even lower utilization to demonstrate responsible credit use. Never exceed your limit.

3: Maintain Multiple Trade Lines

Having more than one trade line, such as a credit card, line of credit, or car loan, shows that you can manage various forms of credit. A mix of credit types can strengthen your profile.

4: Use your credit!

Lenders don’t want to see inactive trades, so use & pay off frequently

Active accounts show lenders that you’re a reliable borrower. Use your credit cards and pay them off frequently to avoid inactivity on your accounts.

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5: Build Credit History

Older accounts in good standing are more favorable than frequently opening new accounts. Lenders prefer to see a history of consistent, responsible credit use.

 

6: Avoid multiple credit checks

Avoid excessive credit checks, as they can signal financial instability to lenders. Each inquiry temporarily lowers your credit score, so only apply for new credit when necessary.

Don’t hesitate to reach out if you have any questions.