Mortgage Monday 7-8-2019

Mortgage Monday 7-8-2019

Hello Southern Lakes Members! Welcome back to Mortgage Monday with me, Shelly, your local Mortgage Loan Officer at your local lender, Southern Lakes Credit Union! Today’s topic is:
Tips on improving your Credit Score
 
Last week, we discussed just how much more you may have to pay on a mortgage if your credit was not in tip top shape. Now, you may be wondering how to improve your credit score. Here are a few things you can do:
  1. Automate your minimum payments on all credit cards and loans. This will greatly reduce the chances of a late payment. If you choose, you can always pay additional to your principal on another date.
  2. Pay down credit card balances and keep them under 30% of the available credit. For example: if you have a credit card with a limit of $10,000, keep your balance under $3,000.
  3. Limit credit inquiries and new accounts. Only have your credit ran when necessary and limit the number of accounts that you open.
  4. Keep two to three lines of credit or credit cards active. Having little to no credit can be almost as detrimental as bad credit. Maintaining a mix of credit such as a car loan, a credit card, and a home loan is best, if possible.
  5. Keep your oldest credit card open. Older lines of credit are more favorable towards your credit score. Rather than closing these old cards, keep them open, even if you do not use them, may be best for your score.
 
Do you have questions on credit or qualifying for a mortgage? I invite you to call me directly at (262) 694-1600 ext. 604. You may also leave a comment here or send us a message. Someone from our team will get back to you as quickly as possible.
 
Come back next week for our upcoming topic: How to get your mortgage insurance removed