Your credit score has a major impact on your ability to get a home loan with a low interest rate. That’s why it’s so crucial to make sure your score is as high as possible before applying for a mortgage.

If your credit isn’t in great shape, you can work toward improving it. Use these tips to boost yourpersonal credit score:

  • Order your credit report. Before doing anything else, request a copy of your credit report. You’re entitled to receive a free one each year. When you get it, look it over carefully for errors and have them corrected right away. You’ll also find out how much you owe and which creditors you owe.
  • Pay your bills on time. Late payments bring down your credit score, and it can take time to raise it again. Make sure you pay all of your bills on time, and don’t miss any payments.
  • Carry low balances. Keep your balances low if you can’t afford to pay them off completely. Higher balances will lower your credit score significantly. Keep balances below 50 percent of your limit.

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