In this week’s edition of Mortgage Minutes, Academy Mortgage offers advice on how to raise your credit score. Your credit score is a very important aspect in securing a mortgage, and it can also affect the interest rate you will receive.
The closer your credit score is to 850, the lower your interest rate will be. There are many ways you can help to raise your credit score, starting with making any payments you have on time. Anything from a credit card to student loans or a car note that is reported on your credit report can affect your overall credit score. A good payment history accounts for 35 percent of your credit score, and just one late payment can drop your score between 40 and 100 points.
Another way to help lower your credit score is to keep the balances low on any credit cards that are in your name. As a general rule of thumb, Academy Mortgage advises that you keep your balances at less than 30 percent of your overall credit limit.
Academy Mortgage also recommends that you keep your credit cards open, as a portion of your credit score also takes into account the amount of time that you have had credit history. You don’t have to keep a balance on the cards, but be sure to use them every three to six months so they don’t get closed out by the creditor.
As you prepare to purchase a new home in Atlanta, work to improve your credit score by keeping credit card balances low, making payments on time and keeping your cards open while using them sporadically. For more information on how to improve your credit score or obtain a new home loan, contact Academy Mortgage by calling 404-558-4399 or visit www.AcademyMortgage.com.
Equal Housing Lender. (c)2013 Academy Mortgage License #3113. GA Lic. # 20505. This is not a commitment to lend. Academy Mortgage Atlanta: 5565 Glenridge Connector, Suite 400. Atlanta, GA 30342. Georgia Residential Mortgage Licensee.