Get Your Credit Score Up Before Buying a Home

September 10, 2019

 

 

 

 

 

Home prices in Colorado have gone up considerably the past ten years. That's why it's important to get your credit score up before getting a mortgage. This will allow you to get the lowest interest rate possible and ultimately leading to a lower payment. 

 

Here are three tips to help:

 

1) BE CAREFUL ON GETTING YOUR CREDIT PULLED

 

We all want to see our score but there's a big difference between a hard pull and a soft pull. In order to prequalify for a mortgage, a credit pull is required in order to make sure you're qualified but sometimes can be premature. 

 

2) DO NOT USE MORE THAN 30% OF YOUR ALLOWED CREDIT CARD BALANCE

 

We may be allowed to rack up $10,000 on our credit cards but most people don't know if you use over 30% of that balance, it could negatively effect your credit score. Try to keep your balance below that threshold. 

 

3) CLOSING ACCOUNTS

 

This is another common mistake. If you don't use a credit card, it's best to just keep it at a zero balance rather than closing it. Eliminating an account can have a dramatic effect on your credit score. 

 

Please call Colorado Capital Group in order for us to help. 

 

 

 

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