Considering a New Home Next Year? Start Now and Get a Jump on Improving Your Credit Score

Grab A Fresh Copy

Begin by obtaining a fresh copy of your credit report from one of the major credit agencies. Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report once every 12 months. To access this service, visit AnnualCreditReport.com, a website recommended by the Federal Trade Commission. Avoid using search engines to find "free credit report" as there are fraudulent websites seeking to obtain your personal financial information. Stick to the government-recommended website mentioned above.

Clean Up Anything Outstanding

Once you have your credit report, carefully review it line by line. Make sure you recognize all current and outstanding accounts listed. Verify that the balances owed are accurate and reflect your actual debt. It's crucial to identify any errors or old debts that have already been paid in full. If you come across any inaccuracies, contact the reporting agency to report the issue. They will guide you through the process of disputing the information if necessary.

Pay Down Those High-Interest Debts

Another important step is to prioritize paying down your high-interest debts. Start by making the mandatory minimum payments on all your debts to avoid being sent to a collection agency. Then, focus on paying off the debts with the highest interest rates first. By doing so, you'll reduce the amount of money spent on interest over time. The extra funds saved can be used to further pay down your debts.

These are just a few actionable steps you can take now to begin improving your credit score. When you're ready to discuss a mortgage for your new home, feel free to reach out to our team. We are here to provide guidance and help you find a mortgage offer that aligns with your needs, budget, and credit situation.