Dispute any errors on your credit report, pay down credit card balances and pay every bill on time. Keep old accounts open so your credit history stays long. FICO scores range from 300 to 850, and a higher score can get you a better interest rate on a mortgage.
Buying a home? With the Beycome buyer program, you pay no upfront fee and can get up to 2% of the price back at closing.
Buying in Florida? You can get pre-approved with Beycome Mortgage (NMLS #2523620). It’s an affiliate of Beycome, and you’re not required to use it.
A FICO score is a type of credit used to assess the “risk” of lending to someone. A base FICO score ranges from 300 – 850 and takes into account payment history, debts, and credit history, along with other factors. There are definite benefits to increasing your score over time. Banks and credit unions could offer better interest rates on a home mortgage if they see you have a higher-than-average score. This is why it’s smart to check your credit report annually for errors and issues that may be costing you a higher number:- Bankruptcy
- Liens
- Late payments
- Foreclosures
- Accounts in collections
- Repossessions
- Judgments
- If you see any errors at all on your report, even something as small as a misspelling, dispute it! An important part of increasing your score is making sure your information is correct and that there are no cases of fraud or identity theft.
- Pay down credit card balances as much as you can. If possible, don’t make any new purchases on the credit card. Put that plastic on ice!
- Certain banks and financial institutions have special credit-building loans that can build up your history without buying into higher-interest-rate loans.
- Moving forward, make sure to pay every single bill on time, even non-credit bills. Missed rent and utility checks can still get reported and brought to credit bureaus.
- If possible, don’t close any accounts, even if you’ve paid them down. You still need a long credit history to be able to sustain a good score.
- Talk to your creditor. If you’ve had a small slip-up with a late payment, sometimes you can get it waived just by asking. This works best if you have a legitimate reason for being late and you’re upfront right away about the issue.