4 Essential Ways to Repair Your Credit to Buy a Home

What is a good credit score? Why does it matter to you? When we are younger, the stakes are lower. You didn’t have to worry about a credit score because you weren’t planning on buying a home anytime soon. But, as you get older and want to land a dream job, get a mobile phone contract, or most importantly buy a home, your credit score is crucial. Below, we will explore why a good credit score matters and how you can fix your credit.

Why Do You Need a Good Credit Score?

A good credit score essentially gives you more choices. Homebuyers with the best credit can typically get the lowest mortgage interest rates. On the other hand, if you have poor credit, you are considered a subprime borrower. This label gives you fewer options and higher interest rates.

What is a good credit score? And what credit score is needed to buy a home? The answer to this can vary from lender to lender. Yet, good credit scores with the main credit reporting agencies tend to fall into the following ranges:

Equifax  – 420 to 700

Experian – 880 to 999

Call Credit – 4 to 5

We encourage you to check your credit score about once a year to track your progress and to make sure there are no false debts that are hurting your score.

How to Repair Your Credit

Your credit score shows lenders your ability to pay money back. Therefore, most of the ways to repair your credit involve you making on-time payments for debts you owe. Here are some tips:

Show You Are Stable – Prove to banks that you are able to effectively manage your finances by opening and paying for your internet contract, utilities, and other monthly payments on time.

Pay on Time – Your credit score will be seriously impacted if you receive any court judgements for debt. Therefore, seek debt advice if you find you are having issues keeping up with your payments.

Do Not Have Too Many Credit Cards – Potential lenders may see you as a high risk if you already have several open accounts with high credit limits. Improve your chances of securing a mortgage by closing the accounts you no longer use.

Don’t Move Around – When mortgage brokers see that you have lived in one spot for a significant time, they feel more comfortable. It also helps if you have kept a steady job.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Estate Agent Talk

Larry Ellison’s estate is the third largest oceanfront parcel in Palm Beach County

America’s #1 buyer of expensive homes, Larry Ellison, is selling a mansion from his Florida collection, and it’s a big one. Larry’s Seminole Beach estate, in an exclusive part of North Palm Beach with over 520 feet of ocean frontage is listed at $145 million. The Tuscan-style mansion was built in 1998 on 8.5 acres…
Read More
Breaking News

BREAKING PROPERTY NEWS – 18/08/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   US Proptech News: PropTech Unicorn PLACE expands in 19 states with 37 new teams PLACE, the industry’s only brokerage-agnostic technology and business services platform for top real estate professionals, today reported strong mid-year growth, launching 37 teams and expanding the PLACE footprint to 35…
Read More
Home and Living

Should you buy a house with Japanese knotweed?

According to recent news, the hot weather has been a positive boon for one common and highly invasive plant in the UK, namely the Japanese knotweed. The Express has reported over the last few weeks that this perennial is taking over a park in Worcester and locals are worried it’s likely to have a big…
Read More
Breaking News

BREAKING PROPERTY NEWS – 17/08/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   NAPB: Planning Applications Fall in England, Latest Official Figures Show PRESS RELEASE: The number of planning applications received by councils in England fell almost 12% in the first quarter of this year compared with the same period in the previous year, new figures show. Data…
Read More
Estate Agent Talk

How to Build an Impressive Real Estate Portfolio

Even if the concept of building your own investments resume sounds pretty foreign at first, it doesn’t matter if you’ve been in the business for years now or you’re only just starting out. Portfolios aren’t only for the big players, and, with the right knowledge and careful planning, virtually any investor can handle the challenge…
Read More
Estate Agent Talk

The Surprising Benefits Of Solar Powered Roller Garage Door

Technology is constantly changing and moving forward, and one of the most recent innovations in garage door technology has been the use of solar powered roller garage doors. Instead of being connected to the electricity grid, a solar powered roller garage door collects energy from solar panels and uses the energy from the sun to…
Read More