Your credit score helps lenders see how you’ve handled debt in the past; the higher your score, the lower the interest rate on your mortgage might be. So, as you can imagine, it’s good to raise your score in preparation for applying for a loan

• Stay on top of your score & report: Regularly monitor your credit score and review your credit report to stay informed about your financial standing and identify any potential issues.
• Dispute/fix any errors on your report: If you come across any inaccuracies or errors on your credit report, take immediate action to dispute and rectify them, as they can negatively impact your credit score.
• Be sure to always pay your bills on time: Timely payment of your bills, including credit card bills, loans, and utilities, is crucial for maintaining a positive credit history and avoiding late payment penalties.
• Keep your credit usage under 30%: Aim to keep your credit utilization ratio below 30% by managing your credit card balances responsibly. Higher credit utilization can negatively affect your credit score.
• Pay down any outstanding debt: Prioritize paying off outstanding debts, such as credit card balances or loans, as reducing your debt load can improve your credit score and overall financial health.
• Don’t close out old paid off credit accounts: Even after paying off a credit account, it’s generally advisable not to close it, as keeping old accounts open can contribute positively to your credit history and length of credit.
• Avoid applying for new lines of credit: Minimize new credit applications, as frequent applications can be seen as a red flag by lenders. Only apply for credit when necessary to avoid unnecessary inquiries on your credit report.

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