3 Tips to Improve Your Credit Score

Good credit can be the difference between getting a good mortgage or not. Even if you can find a lender, with a poor credit score you’ll likely be stuck with a much higher mortgage rate. So, what can you do to ensure you are getting the best deal possible on your mortgage?

Here are 3 tips from our Haitian real estate professionals to improve your credit before you buy a home!

1. Have (Or Create) Credit History

Credit scores show lenders how risky it is to lend you money. A low credit score means high risk and no credit score means, well, they have no idea what to expect! Your credit score is similar to a report card, it reflects if you are capable of paying a loan for extended periods.

That means always keeping your oldest credit card open, so your credit score shows you’ve had a long-term line of credit. If you don’t have many years of credit history, ask a family member with great credit if they would allow you to be an authorized user on their credit card. That card’s payment history will then become a part of your credit history!

2. Make Payments on Time

Making late payments on credit cards or not paying your credit card bill at all can put a huge dent in your credit score. Think about it this way: would you be willing to lend money to someone if you weren’t sure if they’d pay you back? Probably not! The bank isn’t willing to take that risk either.

Make sure you are only using credit for purchases you feel confident you can make the payments on time. And if you are worried about forgetting to make a payment, turn on auto-pay on the account!

3. Avoid Making Multiple Large Purchases in A Short Time Frame

You’ve probably already heard a realtor say something along the lines of, “if you want to buy a home, you shouldn’t make any other big purchases any time soon.” That advice isn’t just because they want you to have enough savings for your down payment. It’s also because any other hard inquiries into your credit score (say by a car dealer) will drop your credit score!

Moreover, if you add several big loans under your name, it might make your lender question if you are capable of paying for a mortgage on top of your monthly bills.

Looking To Buying a Home?

Haitian Realty is a directory for Haitian real estate professionals that can guide you through the home buying process! We work with Haitians all over the United States in hopes of promoting homeownership and financial stability among the Haitian community.

Learn more about us and contact us today to get started with the home buying process!