The cost of just about everything has been going up, from gas to clothing to food. Interest rates are rising on borrowed money, including both credit cards and loans. If you’re looking to buy or refinance a house in the near future, you may be concerned with the fact that mortgage rates are rising. Here’s why your credit score matters and 5 ways to improve it.
Why Your Credit Score Matters
Whenever you apply for credit, a potential lender pulls your credit report, looks at how you’ve handled credit up until now, and notes your credit score. Your credit score is a three-digit number that lets lenders know at a glance whether you’re likely to be a risky borrower.
Your credit score matters because the best rates go to the borrowers with the best credit scores. If you have a low credit score, you may not be approved for a mortgage at all, or you may be approved only with a high-interest rate. A high-interest rate means you’ll pay thousands of extra dollars toward interest over the life of the loan.
5 Ways to Improve Your Credit
If you know your credit needs improvement, it’s a good idea to work on bringing it up before you apply for a mortgage. Ways to improve your credit include:
Being proactive about your credit before you apply for a mortgage can give you the best chance of approval at an attractive interest rate and loan terms. Reviewing your credit report ahead of time helps you to avoid any unpleasant surprises when your credit is pulled. Dovly is an automated credit repair engine that can help you review and correct errors on your credit report. Get in touch with Dovly to try it risk-free with our free membership tier today.