A Credit Score Trick To Use When Buying A House

December 14, 2018

Dreamstime

When it comes to buying a house, your credit score can be the deciding factor in saving your thousands of dollars over the life of the loan. So it's important to boost your score by taking a look at your credit for errors, not going over your current credit card limits, don't pay bills late and don't apply for new lines of credit until you apply for a mortgage.  But one rental expert offers a credit-boosting tip that even your realtor may not know. Call your credit card companies and find out what dates they report to the credit bureaus when you're getting serious about buying a home. This ingenious hack can be a big factor for you.  Since credit utilization is one of the biggest factors in your credit score and having a high credit balance on accounts indicate to creditors. Financially overextended and are more likely to miss payments. Even if you pay off your card every month, depending on when your credit card company reports, it can falsely show you have high balances on your line of credit even though it has a zero balance when a payment is made after the report. Credit experts say you shouldn't carry a balance exceeding more than 30% of your credit limit on any given card. So knowing when to pay to keep your credit utilization under 30% on each card will mean you are in the position for the best interest rates. Most credit card companies report repayment information to the credit bureaus once a month, she confirms. But that's not a hard and fast rule as some may report more frequently and some may not report at all. At the very least it may be key in keeping your credit score steady during the mortgage process.

SOURCE: Apartment Therapy

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