Credit is one of the main factors lenders look at when deciding to approve you for a mortgage loan. It is also a big factor that determines the kind of interest rate you get. You want to have the highest possible score when applying for your home loan and there are a few steps you can take to make sure your score is better than what it is now.

The first thing you want to do is to pay down any outstanding revolving debt such as credit cards. The higher the credit balance you have on these cards, the lower it could be pulling down your score.

If you have any collection accounts on your report, you want to call your creditors and see if you can come to a payment arrangement with them to have the collections “deleted” from your report if you agree on a settlement amount.

It is possible to settle any collection accounts with creditors but it is important you receive a written note saying they will delete your collections if a settlement is reached.

A good percentage of Americans have credit reports that have outdated information as well as errors, you want to make sure your report is not one of these by going through a copy of your report regularly.

These errors can be removed and add significant points to your current credit score.

Don’t forget to make sure any changes or updates are reflecting on your scores from the 3 main credit bureaus. Equifax, Transunion and Experian.

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