What Bills Help Build Credit for a Mortgage?
Those who seek to obtain loans and credit cards must maintain a high credit score. Lenders and creditors prefer that applicants keep a credit score at 700 or above. The score indicates how they handle financial responsibilities such as repayments. The most important step that an individual can take to improve their score is to pay their bills on time. Paying bills on time accounts for 35% of credit scores.
Most bills help build credit. Examples include:
- Utility bills
- Cell phone bills
- Vehicle bills
- Insurance bills
- Mortgage repayments
When minors become adults, they start with a credit score of 300. To build it, they must obtain student credit cards designed for their needs. If a credit card poses too much risk, they can begin with something simple such as a magazine subscription. The trick is to receive a bill in installments. Then, pay each installment on time.
Once young adults become responsible for themselves financially, their utility bills and rent payments will continue building their credit scores. Those who still live at home benefit from placing a utility bill in their name including their cell phone.
Maintaining a solid credit score helps individuals obtain more favourable home loan interest rates. This equals savings that reach thousands of dollars over time.
Bills Help Build Credit Conclusion
Paying bills indeed will help build credit, especially for homebuyers who need to finance their home purchase. While you build your credit, you can apply for a Mortgage House bad credit home loan. Contact our loan specialists to obtain more information today.