Don't Make These Credit Card Mistakes When Applying For A Home Loan

 When applying for a home loan, it's crucial to manage your credit cards responsibly. Here are some common mistakes to avoid:

1. Making Late Payments: Late payments can significantly lower your credit score. Lenders view timely payments as a sign of reliability.
2. Maxing Out Credit Limits: High credit utilization, or using a large percentage of your available credit, can negatively impact your score. Aim to keep your utilization below 30%.
3. Closing Old Accounts: Length of credit history affects your score. Closing old accounts can shorten your credit history and reduce your overall credit limit, both of which can hurt your score.
4. Opening New Accounts: Applying for new credit cards results in hard inquiries on your credit report, which can lower your score temporarily.
5. Ignoring Credit Reports: Regularly check your credit reports for errors or fraudulent activity. Dispute any inaccuracies you find to keep your score accurate.
6. Only Making Minimum Payments: Paying only the minimum amount due can lead to high balances and interest charges. Aim to pay off your full balance each month.

Avoiding these mistakes can help keep your credit score healthy and improve your chances of qualifying for a home loan. If you need assistance in managing your credit, call us to see if your credit score is on track, so you can get into your dream home faster.