You’re likely aware that a high credit score is beneficial when applying for a new or refinanced mortgage. The higher the score, the better the terms. Here are five ways to improve your credit score before applying for a mortgage.

• Pay your bills on time, all the time. Lenders need to see reliability and a positive payment history.
• Pay down credit card balances. The more you pay down, the lower your credit utilization ratio.
• Don’t close — or open — accounts. Doing so could have adverse effects on your lendability.
• If you’ve no credit history, you can apply for a secured credit card, one that is backed by your own cash deposit.
• Lastly, check your credit report for any errors. Be sure to take advantage of your once-per-year free credit report to review your history.

Following these steps won’t give you an excellent credit score overnight, but they will put you on a path toward a credit score that will make your lender smile.

Have questions about credit and mortgage loans? Give me a call.