Having good credit and a strong credit score is crucial to securing a mortgage, so, in honor of National Credit Education Month, our friends at Team 101 at Northpointe Bank have been sharing tips that can help you build your credit. Below are Team 101’s six tips to get your credit-building journey started, but if you need more help with your credit, contact a lender, who can look at your specific circumstances and suggest ways to improve your credit score.
Review your credit report: The first step to building good credit is understanding your current credit. Start by reviewing your credit reports regularly. You can request a free annual credit report from each of the three credit bureaus – Equifax®, Experian®, and TransUnion®.
Dispute Errors and Inaccuracies: As you review your reports, look for errors. Credit report errors are not uncommon, and you have the right to dispute the information with the credit reporting company.
Secured Credit Cards: Secured cards are similar to traditional credit cards, but they require a security deposit from the consumer, making it an accessible option to build credit.
Become an Authorized User: A simple way to establish good credit is to become an authorized user on a trusted person’s existing credit card account who also has good credit.
Pay your loans on time: Making on-time payments towards your student, auto, or home loans is good for your financial well-being and can help you build good credit.
If you use credit cards, keep your credit utilization low. Utilization is the percentage of your credit limit you use, and it is recommended to keep your credit utilization below 30% on all cards when possible. The lower your utilization, the better it is for your score.
Looking for your dream home? Liberty Homes has been building new homes in Utah for nearly 30 years. We take pride in our trade, crafting each home as if it were our own. Our quality, affordable homes are energy smart and thoughtfully personalized for your active Utah lifestyle. We currently have townhomes available in Salt Lake County, single-family homes in West Jordan (now open to all ages!), and single-family homes in Heber City. Contact us today to find your dream home.
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