Pay Your Bills In Full Every Month
This is the first and most important step towards boosting your credit score. Your credit rating aims to represent how reliably lenders can trust you to repay your debts to them, so paying all your bills in full every month will give you a solid baseline from which to build.
Keep Balances Low
Borrowers who routinely run high balances on their credit cards are seen as higher risk. Keeping the outstanding balances as low as possible makes you seem more responsible, which means you are a lower risk for potential lenders.
Limit Your Lines Of Credit
Identifying your ideal number of credit lines can be a bit tricky. To some extent, having multiple lines of credit can be a good thing. If you are able to pay multiple bills in full every month, it shows creditors that you can successfully manage your debts. If you run up needless balances on multiple credit cards, however, it can make you seem unnecessarily "spendy" and somewhat irresponsible. If you have a car and a home loan, you may want to pick two primary credit cards to use exclusively and cancel your other ones.
Space Out Your Credit Applications
Did you know that every time a lender pulls your your credit history, your score drops a little bit? The impact is fairly limited and it's not something to stress over, but it does serve as a reason to space our your credit applications. For example, if you just bought a car last month, you may want to wait a few more months before applying for a new credit card.
It's never too soon to start working on raising your credit score. Establishing a solid credit rating takes time - even if you're not planning on buying a home for several years, taking steps to increase your score now can make a big difference in the long run.
Ready To Start Touring Homes?
It's never too soon to start improving your scores, and it's also never too soon to start touring homes for sale at the Lake of the Ozarks! Visiting potential homes does not in any way obligate you to move forward with the sale, but it will allow you to get a better feel for what you do and don't want in your next home. Our Lake of the Ozarks real estate agents would be more than happy to show you around!
The Property Shop at the Lake
2086 Horseshoe Bend Parkway
Lake Ozark, MO 65049