here<\/a> or hit the video below to watch the portion discussing credit and raising your credit score.<\/p>\nThe State of Credit Scores in America<\/h2>\n
The average FICO score in the U.S is 716 which is considered a strong number. Nearly half of Americans have a credit score of 750 or higher, a big jump from just 10 years ago. This is a healthy sign for the real estate market as Americans are taking their credit scores seriously.<\/p>\n
Misconceptions about Credit Scores<\/h2>\n
However, there are still misconceptions about credit scores. Only two-thirds of borrowers know that the amount of money invested in the stock market does not impact their credit score. Similarly, only 47 percent of borrowers know that the mortgage companies will check their credit and employment on the day of closing. This can have serious consequences as deals can fall through if the borrower’s credit or employment status changes.<\/p>\n
How to Raise Your Credit Score to 800 and Above<\/h2>\n
To raise your credit score to 800 and above, it is important to pay your bills on time. On-time payments account for 35-40% of your credit score. Managing credit utilization, keeping credit accounts open, and having a mix of different types of loans can also help improve your credit score.<\/p>\n
Additionally, it’s important to note that credit scores above 800 are the best rate you’re going to get. Having your score above 800 will put you in really good shape with lower interest rates and better terms.<\/p>\n
In conclusion, understanding your credit score and how to improve it is crucial to securing the best rates on mortgages and other loans. By paying bills on time, managing credit utilization, keeping credit accounts open, and having a mix of different types of loans, you can increase your credit score and secure the best rates on mortgages and other loans.<\/p>\n