You’re getting ready to buy a home and hoping your credit score qualifies you for a great mortgage rate. What’s the biggest factor in determining your individual credit score? Your payment history. Unfortunately, issues such as missed or late payments are not always easily fixed. That being said, you can improve your score over time. Here are two of the most important ways to do it:
Pay your bills on time: Late payments – even if they are only a few days late – can lower your credit score. Collections can have an especially big (and negative) impact.
Get current and stay current: Work with your creditors to get back on the right track. The longer you pay your bills on time after being late, the more your credit score should increase. With newer, more positive information in your report, older credit problems will impact your credit score less over time. Want to know more? Read these tips.