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.