Home buying doesn't begin on the instance you walk through the door of your first open house. The moment you make the decision, you have to immediately start thinking about the finances - and your credit standing is an important component.
If you have a good credit, your chance for buying a home is significantly increased. So here are some tips on how you can boost your credit score before buying according to Trulia:
Get your hands on your credit report
Make sure to get your hands on your credit report now. One way to easily solve problems is by finding out about them ahead of time - any issues, both serious and minor ones, can sometimes take a long time to fix.
Mistakes happen: get them fixed
Statistics reveals that 25% of the people who have been declined of a mortgage had errors or inaccuracies in their credit reports. So when you spot one, make sure to immediately find a solution for it.
Stay current
This simply means to keep your payment record updated, or in other words, pay your bills on time. One way to increase your credit score in a clear and steady upward climb is by never missing a payment, ever!
Pay more than the bottom line
Paying more, even if it I just a little bit is positive indicator for anyone reviewing your credit report. So as much as possible, make more than the minimum payments on your revolving credits each month.
Maintain low balances
Another credit-building tip is to avoid carrying a balance that's more than 50% of your limit on each card; this means that you should always pay those debts down below the halfway mark on a regular basis.
Don't move it, lose it
If you think of paying off the debt on your existing card by just moving it to a new one is a good idea, think again. Credit card companies have caught on to consumers who try to reduce balances by shifting them back and forth between cards, and they could charge you hefty fees if you do.
Don't cut cards
There are arguments if you should close paid-off accounts, but generally it's smarter to play it safe: Pay off all your credit cards, but don't close any of them prior to applying for a mortgage.
