4 key steps to boosting and repairing credit scores to get a mortgage

Fortunately, there are steps you can take to boost and repair your credit score. Here are four key steps to get you started:

Check your credit report: The first step to improving your credit score is to check your credit report for errors. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. Review your credit report for any inaccuracies, such as incorrect account balances or missed payments. If you find errors, dispute them with the credit bureau.

Pay your bills on time: Payment history is one of the most significant factors that determine your credit score. Make sure to pay your bills on time, including credit card payments, car loans, and student loans. Late payments can have a negative impact on your credit score, so set up automatic payments or reminders to ensure you don't miss any payments.

Reduce your credit utilization: Your credit utilization ratio is the amount of credit you're using compared to your credit limit. High credit utilization can hurt your credit score, so aim to keep your credit utilization below 30%. If you have multiple credit cards, consider paying down the balances on the cards with the highest utilization rates.

Build your credit history: If you don't have a long credit history, it can be challenging to get approved for a mortgage. You can build your credit history by opening a credit card or taking out a small loan and making timely payments. Just make sure to keep your credit utilization low and make payments on time.

In conclusion, improving your credit score takes time and effort, but it's worth it to secure a favorable mortgage. By checking your credit report, paying your bills on time, reducing your credit utilization, and building your credit history, you can boost and repair your credit score and increase your chances of getting approved for a mortgage.