Mortgage Insider: Tips for Improving Your Credit Score

Special article brought to you by Econ Mortgage

Whether you need a loan for the purchase of a home, or it’s time to refinance an existing home loan, your credit score is a crucial part of the equation.

KNOW YOUR SCORE
The higher your credit score, the more likely you’ll get approved for a loan, and, in many cases, qualify for a lower interest rate. Any score over 740 is generally considered very good. A score between 670 and 739 is good. 580 to 669 is fair, and anything below 580 is considered poor credit.

There are numerous credit scoring algorithms used in different industries. Scores provided by sites like Credit Karma are not the same ones used by mortgage lenders, so your score pulled by a potential mortgage lender will likely be different from what you see on the free sites or apps. Be aware, these “free scores” can be several points off — sometimes even more than a hundred points!

CHECK THE REPORT
You can access your complete credit reports once a year for free on AnnualCreditReport.com. Review your reports carefully and look for any mistakes or outdated information that could be negatively affecting your credit score. This site is invaluable in providing information regarding current items on your report.

PAY DOWN BALANCES
Paying down any credit cards with a large balance can help boost your credit score. This is especially important if your total balance is over 30% of your total available credit. If you can get it under 10% credit utilization, even better.

KEEP OLD ACCOUNTS OPEN
If you close an older account, you lose the age value from the account, and it could also impact the utilization ratio for any remaining open account balances. Even if you’re not using an account, keep it open to avoid dinging your credit.

DON’T OPEN APPLY FOR ANY NEW LOANS
Don’t be that guy that kills his mortgage loan by taking out a new truck loan right before closing on the new house. Just don’t risk it.

WHO IS ECON MORTGAGE?
At Econ Mortgage, we keep our overhead low and use technology to streamline the mortgage process. We also make less profit on each loan, so we can pass the savings on to our clients. Our clients come back to us again and again because they know we’ll take care of them and will get them the best possible rate at a competitive price.

Our headquarters are here in Syracuse and we are home grown and love the community, but even more, we love helping our neighbors save money when they refinance or buy a new home. Call us at (385) 258-3588 or visit EconMortgage.com to learn more.

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