If you’re like many people, you already know that the higher your credit score is, the better terms and rates you’ll qualify for when you want to buy a home.
But what is a “good” credit score, and what can you do to boost yours?
What’s a “Good” Credit Score to Buy a Home?
Credit scores can range from 300 – that’s the low end – to 850. The latter number is considered a perfect credit score. However, you don’t have to have perfect credit to qualify for a home loan.
Generally, a good credit score ranges between 700 and 749. Scores between 650 and 699 are considered fair, and any score lower than 650 is considered poor.
Having a lower credit score doesn’t prevent you from getting a loan, but in most cases, it stops you from qualifying for the best terms and interest rates. That means over time, you’ll pay more for your home than someone who had a higher credit score would.
Related: Q&A: Credit and buying a home
How to Boost Your Credit Score
First things first: Get a copy of your credit report and dispute anything that’s wrong. (You might be surprised at how many people discover errors on their credit reports!)
Once you’re sure everything is right, make sure you’re making regular monthly payments (and make sure they’re on time) – and do whatever you can to lower your debt. The more you pay off, the more favorably lenders will look at your credit profile.
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