Low credit scores mean larger down payments, which is why credit reports are a source of anxiety to many buyers, especially first-timers. They worry whether their scores will be good enough to get them the best mortgage rates. If you have some concerns about your credit ranking, here are a few steps you can take:
- Review your credit report. If you know what’s in it, you don’t have to waste time and energy with guess work. Check to see if there are any errors, and if so, dispute them.
- Make payments on time. Missed or late payments, even on credit cards can stay on your record for years, making lenders feel that granting you a mortgage could be a risk.
- Pay bills with credit cards. Set up utility bill payments online through a credit card account in your name to help establish credit.
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Learn what your score means.