Black and White Dog laying down on top of stairs

8 Steps to Improve Your Credit (and Qualify for a Mortgage)

Has your low credit score got you down because you feel like it is impossible to qualify for a mortgage? If you are dreaming of homeownership, don’t let yourself get stuck in a rut. There are simple things that can be done to improve your credit score, helping you take a step closer to owning the perfect home for your family. Tips to Improve Your Credit At DUFFY Realty, we love seeing our clients move into their dream homes! We have many industry connections that can help you improve your credit score so you can qualify for the financing that is needed. Here are a few proven tips that can help with your credit score:
  1. Always Pay on Time: Late payments are not good for your credit score, which is why it is essential to stay current with all of your payments. Never miss a payment, even by a day! Payment history is one important factor that affects your credit score.
  2. Repair Delinquent Accounts: If any of your accounts are past due, don’t delay in getting the payment made so you can bring the account back to current.
  3. Dispute Credit Errors: It is surprisingly common to have errors on your credit report! Look through the detailed history and identify areas that need to be disputed. This process can remove discrepancies that are pulling down your credit score.
  4. Debt-to-Income Ratio: Talk to a financial professional to evaluate your debt-to-income ratio. Make sure your income is high enough, and your credit balances low enough, that you have a healthy debt-to-income ratio that allows you to add a mortgage on top.
  5. Pay Down Balances: As you are improving your debt-to-income ratio, two strategies can be used for balance paydown. The first option is to pay off the lower balances, then roll those payments into the bigger balances. The second option is to target the high interest rates first, then move down to the lower interest rate lines when the high accounts are finished.
  6. Keep Old Accounts Open: You might be tempted to close old, unused credit accounts. But closing the accounts could harm your score. Old accounts help by showing credit history length, and they also impact the percentage of credit being used vs. what is available.
  7. Avoid New Accounts: When preparing for mortgage approval, try to avoid opening new credit accounts. For example, you might wait to buy a car or new furniture until after the mortgage is in place.
  8. Watch Your Credit Score: Keep an eye on the trends so you can see how your spending decisions are influencing your score.
Do you have more questions about improving your credit score? Our team at DUFFY Realty has the right industry connections to help you qualify for a mortgage. Contact us to learn more about the financing solutions available in the Atlanta area: (678) 318-1700.
Rhonda Duffy

Rhonda Duffy

Real estate expert and consumer advocate Rhonda Duffy is documented and ranked the #1 Agent in the U.S. for resales three years in a row and #1 Agent in Georgia 12 years in a row. Rhonda is the media’s go to expert on real estate matters for her commonsense approach, consumer advocacy and work to educate the public on the rapidly changing landscape of her profession. She has been licensed in real estate for 20 years, has been a broker in seven states and is trained in staging certification.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *