Your credit score has a direct impact on your borrowing power. The amount you are approved to borrow and the rate at which you borrow are both impacted by your credit score. If you're planning to buy a home near Lake of the Ozarks in the near future, it's time to focus on improving your credit score to get the best chance at mortgage pre-approval near Osage Beach, MO. Check out a few tips you can put into practice to try to raise your score!
Make Payments On Time
On-time payments are a great way to show that you're responsible with your money management. Being able to pay your bills and loans on time can help raise your credit score and make you a more attractive borrower for a home loan.
Avoid New Lines of Credit
A new line of credit can put a temporary ding on your credit score. If you're applying for a mortgage pre-approval, it's imperative that you avoid opening any other line of credit while you're in the purchasing process. This could void your pre-approval or cause delays at closing if your offer is accepted.
Pay Down Credit Cards
Revolving credit, like a credit card, is beneficial to have for your overall credit score. It adds to your credit diversity and shows you can handle different types of credit. It's even better if you can keep your credit utilization under 30%. Avoid maxing out credit cards and if you are above 30% of your total credit limit, make an effort to pay that debt down.
Transfer High Interest Debts
High interest debts can eat up the payments you're making quickly. The interest that's being charged each month can be hard to get ahead of. There are ways to consolidate high interest debts into a low interest loan, which can be beneficial for paying those debts down. You can also transfer debts to a lower interest loan in order to save on those high interest rates, putting more of your payment toward the principal.
Correct Any Errors
If there are errors on your credit report, it's important to address those with the reporting agencies to get those negative errors off your credit history. It can take some time for these corrections to go through, it's best to get on any inconsistencies in a timely manner to help improve your credit score.
Now that you know a few ways you can improve your credit score, you're ready to prepare for your big purchase. If you're curious what your current rate would be to buy a home at Lake of the Ozarks, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com! We look forward to helping you with your home buying needs!
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