Get your credit score

Before you start shopping for a home, you should get a copy of your credit report. Your credit report will be created by one of the major credit reporting agencies: Equifax, TransUnion, or Experian. Banks use the credit score created by these agencies to evaluate whether to give you a loan, how much to lend you, and at what rate. If you see any errors on the report, you can contact the credit agency and get them corrected before applying for a loan. Correcting those errors can bring up your credit score.

By law, you can check your credit report once a year for free.

Understand your credit score
Your credit score is a three-digit number that can range from 300 to 850. Most scores range from 600 to 700. A higher credit score increases your chances of getting approved for a loan and obtaining a lower interest rate.

How to improve your credit score
Unfortunately, there is no quick fix for improving your credit score. But if you work at it steadily, there are several things that you can do over time to improve it. Here are a few:

  • Correct any errors you find on your credit report. Look for things like incorrectly listed late payments. If you find errors, dispute them with both the credit bureau and reporting agency.
  • Pay all your bills on time every month. Sounds simple enough, but if you have trouble remembering this task, consider setting up email or text payment reminders with your payees.
  • Reduce the overall amount of debt you owe. Create a plan to pay off your highest interest rate debts first while maintaining minimum payments on your other accounts. You may want to get help from a credit counseling service.
  • Pay at least the minimum on your credit card every month, and pay more if you can.
  • Don't go over the credit limit on your credit cards, and try to keep your balance to 25% of your maximum credit limit generally.
  • Make sure you've shown a pattern of paying back debts. If you've never taken a loan or used a credit card, that could result in a lower score.
  • Even if you're no longer using a credit card, consider keeping it rather than closing it in an effort to raise your score. Closed credit card accounts are included on your credit report. Closing an account may actually work against you. Likewise, don't open a number of new credit cards in an effort to increase your available credit.
  • Avoid other big purchases until you close on your house.

    If you are thinking of selling and would like to know how much your home is worth, Bernie Alvey will be happy to give you a FREE, NO OBLIGATION market analysis of your home. Bernie Alvey, Senior Listing Agent with Exit Landmark Realty, specializes in listing fine homes in Huntingtown, MDDunkirk, MDChesapeake Beach, MD and surrounding areas. If you are in the market to sell your home in Huntingtown, MD, Dunkirk, MD or the surrounding areas, contact Bernie Alvey today and he will sell your home quickly and for top dollar! Visit and to see why he is the clear choice to sell your home in Huntingtown, MD and surrounding areas.