The credit score is an important factor in home-buying. It is hard to resist the dream of becoming a homeowner. But, do you realize that you will need a good credit score in order to achieve this? Many homebuyers struggle with their credit scores. However, it can help to save money and make your life easier if you have a high credit score. A good credit score can help you get lower interest rates on loans and credit cards, better approvals for apartments and rental houses, and better insurance rates. Here are five easy tips to help first-time buyers improve their credit scores. Credit Utilization Ratio We all know how much we enjoy pampering ourselves. Who doesn't love to shop as soon as they get their paychecks? We all succumb to the temptation to buy random things. Be careful, guys! This temptation could make it difficult to resist. Credit utilization rate refers to the ratio of the total credit you have available to you and the amount you spend. This is often expressed in percent. If you have $50,000 in your bank account but your spending is around $25000, your credit utilization ratio is 50%. Your score will be affected if the rate is higher. There is no set number. However, keeping it below 30% is considered healthy and gives off a positive impression. Start saving more! Correct any errors on the Credit Report: A credit report should always be accurate. Late payments can have a negative impact on your credit score. You can have late payments removed from your credit report. It is easy. Send a letter explaining why you have paid late to your creditor and promising to make it right. If he agrees to it, he will take the late payment off your credit report. Do not be afraidIt's legal! Late payments can be removed from your credit history. Your creditor must agree to delete the late payment. Creditors have the right to investigate late payments within 30 days. Be an Authorized User on a Credit Card of Someone Else: You can lend your excellent credit score to someone you know. This score can be borrowed from them. That's exciting, isn't it? You can be an authorized user of that person's credit cards. This will allow a person to add your name on his account. Your credit score will now be his. Credit history can affect your credit score. If you're new to credit, you might be able to get some credit history from someone else. You will also be affected by missed payments if the primary account user does not make his payments on time. How opening a new credit card can affect your credit score: A new credit card can cause a slight dip in your credit score, but only for a short time. A "Hard Inquiry", which is required to be added to your credit report, is required when you apply for a card. The lender will want to review your credit history. A hard inquiry can damage your credit score. The effect is usually temporary. You don't want new accounts that lower your average account age. Don't open too many accounts at once. Keep an eye on your reports: If you don't keep track of your actions, you won't know what you are doing wrong. Credit reporting bureaus offer a free credit report once per year. It is a good idea to check your credit reports regularly. This will allow you to check your credit report regularly and get them corrected. The report will also tell you which factor negatively affects your score so you can make improvements. A good credit report will result in lower loan rates. This will help you get a loan at an attractive rate if you do it regularly. These easy credit boosting tips will help you improve your credit score in no time. Do not be discouraged if your credit score is low. There are many options available for those with poor credit scores. Visit Dealty listings today. We also offer loan services for homeowners. Happy shopping!