A content marketing strategy geared toward young buyers in the Greater Boston area.
B2C blogging designed to establish the company as a useful resource to target audience. Written as part of ongoing content marketing campaign for social media.
If you’re gearing up to buy a home, you know that your credit score is key in the process. If not, now you do. Not only does your score factor into how much you put down, it can also determine whether or not you can buy in the first place. It also determines how much of a loan you can qualify for and how much interest you’ll pay.
The best score you can have is 850 – only around one in every 200 people have this score so don’t feel bad if that’s not you. Shoot for 750. This is the magic number for lenders and creditors – at this level you’ll often have lenders fighting for your business which means you’ll get the lowest possible long-term mortgage and loan costs. Careful budgeting, talking to your lender about the items on your credit report and detailed attention to every aspect of your finances is the way to get there. And if you’re not there yet, don’t worry – your score can change. Here are the easiest ways to boost it.
PAY DOWN DEBT
If you don’t have the funds to fix every outstanding wrinkle on your credit and pay down your debt simultaneously, check with your lender before you make a move. While your credit will rise as you pay off debt, your lender may have a different strategy in mind such as addressing more important credit issues first or a different timeline for restructuring.
Around a third of your credit score comes from your payment history. Make sure you never miss another payment by setting up automatic payments. From student loans to car payments, most creditors offer the option. Don’t forget to ensure that there’s enough cash in your account to cover the payments on the day the money will be taken out.
The amount of available credit you use is the second most important factor in your score according to NerdWallet. Banks don’t like lending to people who appear to be living outside their means. Keep your balance on each card to 30% of the limit — if your limit is $5,000, your balance should be $1,500 or less.
LONG-TERM CREDIT CARDS
The amount of credit you have factors into your ability to qualify for a mortgage. You don’t want to be too in debt, but long-term credit use that’s been properly managed can help boost your score. “Length of credit history is considered when determining your score – so the longer you’ve had a credit card, the better,” said CNN Money. Pro tip: closing any card triggers a change in your “utilization” which could hurt your score so be sure to consult with your lender first.
If you end up buying a home before your credit score is exactly where you want it, you can refinance. If you’re in an appreciating market (Boston) and your score continues to rise after you close, you might be able to refinance sooner than you think.