There are many reasons to want to improve your credit score. Maybe you are considering buying a car or a home, and your credit score will be looked at to determine your interest. If you are buying a home, the mortgage lender will certainly look at your credit score. Mortgage lenders in Delaware will all tell you that your credit score can make or break your chances at the best mortgage rates. Whatever the reason, here are a few tips on how to improve your credit score. Follow these tips if you want to land the best mortgage rates in Delaware!
Pay Your Statements on Time Each Month
One of the best and easiest ways to improve your credit score is to pay your bills on time. No matter if you are paying the minimum payment or a little bit extra, paying your monthly statement on time goes a long way in determining your credit score. If you are behind on paying your monthly bill or you are not consistent in paying on time each month, your credit score will get dinged every time. So naturally, it works the opposite way. If you pay your bill on time each month, your credit score will begin to improve.
Don’t Overextend Yourself on Your Credit Limit
In other words, just because your credit limit is $10,000, doesn’t mean you have to use all of the available limits. You should strive to have a small percentage of what you are using in comparison to what you have available to you. Less than 30 percent is usually the best number to stay under. Your credit score is also derived from how much revolving credit you have in comparison to the amount of credit you are using. So if you are using more than 30 percent, your credit score will lower.
Get Rid of Credit Card Balances or Keep Them as Low as Possible
Obviously, the best way to keep your credit score intact or improve it to a higher score is to eliminate credit card balances altogether or at least keep them as low as you can manage. This is because your credit score is calculated based on how many credit cards actually have balances. So the more cards you have with balances, the lower your score will be.
Consider paying off all balances and sticking to one credit card for purchases, and keeping that balance cleared or as low as possible. This will eventually allow your credit score to improve, as well as make a difference in your financial status. You will be able to keep track of your spending better if you are only using one card for purchases, as opposed to multiple cards, and be improving your credit score and overall financial status all at once!
Contact the experienced professionals at Highlands Mortgage. We are a mortgage brokerage firm in Delaware, and will help you find the best mortgage rates around so you can buy the home of your dreams.