It's important to have well established credit with a strong score when applying for a mortgage.
Have you heard of the 2-2-2 Rule?
2 credit cards - clean history of payment for 2 years - with a limit no less than $2,000.00
If you are looking for ways to improve your credit or you just simply didn't know how to maintain having good credit, keep the following things in mind.
1. Pay your bills- This probably seems pretty simple, but it is important and requires you to pay them on time and in full.
2. Keep a reasonable balance on your credit cards- It's best to carry a balance of 25% or less of your credit card limit and pay if off each month, rather than maxing out the card and paying the minimum balance. The ideal way to use a credit card would be to pay it down each month and carry a zero balance.
3. Pay your debts- your goal should be to pay off debt and the best way to do that is to start small. Pay off your lower debts first, freeing up the money your were paying on interest to be used to pay off your larger debts.
Have you heard of the 2-2-2 Rule?
2 credit cards - clean history of payment for 2 years - with a limit no less than $2,000.00
If you are looking for ways to improve your credit or you just simply didn't know how to maintain having good credit, keep the following things in mind.
1. Pay your bills- This probably seems pretty simple, but it is important and requires you to pay them on time and in full.
2. Keep a reasonable balance on your credit cards- It's best to carry a balance of 25% or less of your credit card limit and pay if off each month, rather than maxing out the card and paying the minimum balance. The ideal way to use a credit card would be to pay it down each month and carry a zero balance.
3. Pay your debts- your goal should be to pay off debt and the best way to do that is to start small. Pay off your lower debts first, freeing up the money your were paying on interest to be used to pay off your larger debts.