Focusing to improve your FICO score is important in getting your mortgage approved. There are several factors that can impact your FICO score and its accompanied credit history. It is best not to leave your credit score to chance. Here are effective ways to improve your financial wellbeing and make your credit score better off than it was before.

Put More On Your Card

First, make sure purchases reflect on your credit card that you can afford to pay off consistently. Many people are not aware that how much debt you owe can positively boost your FICO score. By putting everyday items on credit, it will be easier to give your FICO score an instant boost. Though it is enticing to use up to 30% of your available debt load, be wary not to exceed any significant percentage higher than this. This may be negatively viewed by lenders as it would indicate that an individual is experiencing difficulties paying off debt.  

Clear Your Credit History

Many people who think they have bad credit are too afraid to even review it. However it is very important to take a look at your credit history when it comes to taking control of your finances and improve your FICO score. If there happens to be incorrect information on your credit report, this will enable you to contact the appropriate lenders and dispute the charges to be corrected prior to your mortgage application. It may not seem significant, but this can actually have a marked impact on the outcome of your application. 

Make Your Minimum On Time

Often the case is that an individual who is struggling with debt may push away the bills altogether and even give up on the minimum payment. Likewise, it is very important that the minimum debt amount is paid to keep your financial health in check. Seeing the results of lowering down this amount may take months, but this will help improve your FICO score.

Likewise, your credit score is an important aspect of determining your financial health for lenders. What this means is that your credit history is of significant importance when it comes to your mortgage. Instead of leaving it up to chance, ensure that you are making the minimum payments and correct any discrepancies in your credit report. If you are currently on the market for a home and are considering your options, you may want to contact one of our mortgage professionals for more information. If you are looking to buy or sell a home, please contact us.

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