Your credit score is the magic key that opens the door to the best interest rates and loan options. It's a number you'll want to raise as high as possible before you start looking at Beavercreek homes for sale. It takes time to raise your score into the right range and the following five steps you can move your score going in the right direction.

1. Dispute Errors
   Errors are exceedingly common on credit reports. Approximately 25% of credit reports in America contain errors including missed payments, incorrect addresses, open accounts that are in reality closed, and debts that are incorrectly recorded. You should always dispute errors and ensure that any incorrect information is removed from your report. The prevalence of errors on credit reports highlights the importance of keeping your financial records organized. You will need these records to dispute any errors you discover. Once your dispute is submitted, it can take around 30 days for an error to be removed from your credit report and slightly longer for it to improve your credit score.
    
2. Pay Down Credit Card Debt (and Raise Your Credit Limits)
   Credit utilization accounts for 30% of your credit score. Paying down your balances increases your available credit and lowers your debt-to-credit ratio, which has the effect of raising your score. Once you've paid off your balances, ask the credit card provider to raise your credit limit but avoid using this additional credit. Ideally, you want to keep your credit utilization to approximately 1% of your total available credit. It is equally as important to make sure that none of the balances on any single card exceed 25% of your total available credit on that card.
      
3. Get Current and Stay Current on Your Bills
   Lenders look closely at your ability to pay your bills on time. This has a considerable impact on your credit score. Making your payments on time shows that you are responsible with your money and that the lender can count on you to make mortgage payments over the life of the loan. Before applying for a home loan, you'll want to make sure that you pay off all collections, charge-offs, tax liens, or judgments and establish a stable payment history.
    
4. Diversify Your Credit Mix
   Your credit mix is important and you'll want to show a history of paying off everything from car loans and credit cards, to personal loans and utility bills. You should make sure your credit report has a healthy mix of information including credit cards, revolving store charge cards, and installment loans. If you don't have a strong mix, consider taking out a small, short-term loan from your bank and making regular payments. One popular strategy is to swap debt by using a secured loan from a bank to pay off credit card debts. This strategy can be particularly beneficial as secured loans have lower interest rates than most credit cards.
    
5. Monitor Your Credit Closely
   Federal law allows you to pull one free credit report per year from TransUnion, Equifax, and Experian. However, you can monitor your credit monthly for free using services such as Credit Karma. Doing so allows you to quickly address problems and monitor your progress toward your target credit score. 

Our REALTORS® can help you strategically position your credit as you prepare to purchase a home. We invite you to contact Wright-Patt Realty to learn more about the strategies we recommend to get you on the path to home ownership.