Clean Up Your Credit in Four Simple Steps (Advertisement)
Planning to buy a home, now or in the future? It’s never too early to focus on your credit. While it’s possible to qualify for a mortgage with less-than-perfect credit, a higher score can unlock better loan terms—like lower interest rates and a smaller down payment.
No matter where your credit stands today, these four tips can help you improve your financial health and boost your creditworthiness in the eyes of lenders.
1) Spend Within Your Means
Always aim to pay off your credit cards in full each month. If that’s not possible, keep your balance below 25% of your credit limit. For example, if your card’s limit is $10,000, try to stay under a $2,500 balance.
2) Pay Bills on Time
Consistency is key. Paying your bills on time is one of the most critical factors for maintaining good credit. Whenever possible, pay your balances in full to avoid unnecessary interest.
3) Monitor Your Credit Report
Stay proactive by checking your credit report regularly. Look out for fraudulent activity or errors, and address inaccuracies promptly. You can request a free report every 12 months from each bureau at AnnualCreditReport.com.
4) Lower Your Debt-to-Credit Ratio
A high debt-to-credit ratio can hurt your score. To improve it, aim to pay down credit card balances, pause unnecessary credit card spending, or look for ways to increase your income. The goal: keep your debt as low as possible relative to your available credit.
Improving your credit doesn’t happen overnight, but consistent effort will pay off. By following these steps, you’ll be on your way to a healthier credit profile and closer to achieving your goal of homeownership.
Ready to make your homeownership dreams a reality? Contact us today for personalized guidance tailored to your financial goals!
Megan Teel, President
NMLS 323765
Stone Meadow Lending, LLC
Phone: 281-404-5577
24900 Pitkin Road, Suite 130, Spring, TX 77386
Company NMLS 2191063
Equal Housing Opportunity
For educational purposes only. Stone Meadow Lending does not provide credit repair services. Please contact a qualified professional for specific guidance.
