For home buyers, credit scores can affect mortgage rates and loan approvals. Pensacola, Florida borrowers and others all over the country who have higher credit scores achieve lower mortgage rates and are more prone to smoother loan approval process compared to people with a lower credit score.
So if your credit score is not very high, here are some tips to help you make it better:
Get a credit report
Download the most recent version of your credit score from the 3 major bureaus, the Experian, TransUnion, and the Equifax. The reports may be similar to each other, but credit amounts may not appear on each one. This is why getting a report from all of them is a safe step to do.
Double check if there are any errors
Credit reports may contain errors too. So if you see any faulty items on any of your 3 reports, contact the bureau for removal. It is safe to address each bureau for errors on your credit report.
Pay it up
Try and be diligent in paying up your credit balances. This, among other things is the best thing you can do to increase your credit score. This will help decrease the percentage of your credits in use. Try to go for at most thirty percent ratio. Paying down your credit balances will not only lower your debts, it will also increase your maximum house buying price.
For circumstances that harm your credit score such as late payments and medical items, writing a short letter explaining the situation may actually help. It won’t actually improve your score, but it can help your lender in making a decision and maybe an exception. Doing some minor alterations to your credit profile in general can also provide long term effects and lower mortgage rates. For more tips on Pensacola, Florida mortgage, please feel free to browse through the site.