Building a home can be a lot of work. One of the first steps is knowing what your credit score is. This will help you to know the loan amount you will be given and what the interest rate on that loan will be. There are many things that you can be doing on a daily, monthly and yearly basis to ensure that your credit score is as high as possible. Keep reading to find out what they are!
Be on time
One of the best and easiest ways to increase your credit score is to pay on time every single money. On paper, if you are not paying regularly, or miss some payments, this will appear like you make poor financial decisions. This may not only decrease your credit score, but a lender may not want to give you a mortgage. We recommend that you either schedule your payments automatically online or make a note in your calendar monthly where you go over your bills and make payments accordingly.
Do you have a joined loan with a loved one or friend? Was their credit not high enough so you were doing them a favor? Make sure that you monitor these accounts. Although that may have been a nice gesture and there may be no issues, you want to ensure that your credit stays high in case they may be packing payments.
What to pay off first
The way that you pay off your loans is important. We recommend that you pay your high-interest loans as well as small loans first. Loans such as personal loans, credit cards, and private loan tend to have higher interest rates. It is best to put your hard-earned money towards those which will also help your credit score.
Close unwanted Accounts
Do you have any accounts that you do not use and should close them? Or perhaps you have emptied them out but forgot to close them for good? We recommend closing all unwanted bank accounts. Having them open can hurt your credit score.
Here is our list of easy ways to increase your credit score. Have any other tips? We would love to read them in the comments below!