July 2015

Home buying tips—steps to improve credit score

Improve your credit score

Your FICO score is an important piece in applying for a home loan. The higher your score, the better loan terms you qualify for. But what if your score is lower than you’d like it to be? There are some things you can do to improve your credit score.
  1. Check your credit report. Request your free report. Review closely to make sure all amounts owed are correct and make sure there aren’t any late payments listed incorrectly. Report any errors with the credit bureau.
  2. Pay your bills on time. Late payments and the collections processhave a major impact on your credit score (even if only a few days late). Collections stay on your report for seven years. Add a reminder to your calendar or set up auto payments so you will never miss a payment.
  3. Reduce your debt. Stop using credit cards. Make a list of all cards, include balances and interest rates. Pay off the credit cards with the highest interest first (be sure to continue making minimum payments on the rest).
For more tips and information on how your FICO score is calculated, visit www.myfico.com.