Your credit score is very important if you are thinking about buying a house. The interest rate you pay on your loan is largely determined by your credit score. The higher the score, the lower the rate of interest on the mortgage. In fact, if your credit score is below a certain threshold, you might not qualify for the mortgage at all. Therefore, it is very important to improve your credit history if you want to get a good deal on a mortgage.
Here are some effective ways to increase your credit score:
So if you want to increase your score, you need to pay down your credit card balances. Eliminate any small or nuisance balances you may have on some of your credit cards. Then, keep just one or two cards for all your payments. The benefit of this is that your credit report will not be affected by multiple outstanding balances.
These are some useful ways to increase your credit score and land the best possible deal on your mortgage. Remember, a low credit score will not improve overnight. You will need to give it your full time and commitment.
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