Credit scores can range from “Poor” to “Exceptional,” and they play an important role when lenders evaluate your financial health. The higher your score, the better your chances are of qualifying for a mortgage or getting a home loan at a lower interest rate. For instance, FHA lenders require that borrowers have a minimum score of 580 to qualify for a loan with a 3.5 percent down payment.
If you have some concerns about your credit score, 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 guesswork. 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.
- Pay bills with credit cards. Set up utility bill payments online through a credit card account in your name to help establish credit.
Do you know what's on your credit report?
Learn what your score means.