18 Apr 2022

What Is the Fastest Way to Build Credit for a Mortgage?

Mortgage Borrowing Limits

Every day is an opportunity to build credit. It doesn’t happen overnight. However, every daily financial decision is a step toward a better score or worse.

Homebuyers who need to finance their purchase benefit from improving their score before applying for a home loan. A better score will net you more favourable loan terms.

The easiest way to build credit is to pay your bills on time; it’s also the fastest strategy. Paying your bills on time composes 35% of your credit score. Thereafter, apply for one revolving credit account and don’t max it out. Use it to make purchases and pay the balance before the end of the billing cycle. 

Once you open a credit account, keep it open and use it occasionally. Creditors will close dormant accounts and impact your credit score. Charged-off accounts lower the credit available to you. Thus, your score takes a hit. Then, it readjusts. 

When applying for a mortgage, lenders check the score. It’s one piece of an entire financial puzzle. Lenders want to ensure that homebuyers receive terms they can repay in full and on-time. Sometimes this means lending a lower amount.

Mortgage House provides several online resources to help homebuyers understand their financial position. For example, you can use our car loan calculator when you’re in the market to purchase a vehicle. 

Build Credit and Mortgages Conclusion

It’s possible to build credit in 30 days. However, it takes more time. Mortgage House works with homebuyers who qualify for our bad credit home loan. Contact our loan specialists to obtain more information today.

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