It’s the best way to get an attractive mortgage offer.

Although your credit score is one of the most influential factors that determines the favorability of a mortgage loan offer, many people are unaware that there are actually three major bureaus who produce credit scores for individuals— Equifax, Experian and TransUnion. Each score is the result of a complicated mix of your past financial behavior, including payment history and used versus available credit.

There are many ways to improve your credit score. Our experienced mortgage officers are happy to review your specific situation and recommend an improvement plan to meet your needs. That plan may include some of the following steps.

Steps to Improve Your Credit

  • Dispute errors found on your credit report. It’s common to find incorrect information in your credit report about inquiries, late payments, collection amounts and more. The Fair Credit Reporting Act allows you to obtain a free report and challenge any errors found in the document. The credit bureau has 30 days to begin investigating your complaint, so be sure to start this processes as soon as you can.
  • Pay your bills on time. Use automatic payments to ensure that your bills are being paid off before they become overdue. Over time, this demonstrates your responsibility as a borrower.
  • Pay down your debt and lower the percentage of credit used as compared to the total funds available. Using a lower amount of credit will reflect favorably on your score.
  • Become an authorized user on a credit card or loan account for a friend or parent who already has good credit. This way, you’ll benefit from their responsible financial behavior even if you don’t use their accounts. Keep in mind—if they are late on their payment, it will also negatively affect your score.

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