- home >
- mortgage challenges >
- less-than-perfect credit >
- improving your credit score
Your credit score tells a lender how likely you are to repay a loan. To calculate your credit score, a credit reporting agency consider factors such as:
- How you pay your bills
- Your outstanding debt
- How long you have had credit
- Types of credit you have
- How many times you've applied for credit
If you have a low credit score, there are steps you can take to improve it. Keep in mind that your credit score may not improve overnight, but you always have the opportunity to make improvements over time.
Correct errors
To begin improving your credit score, make sure there are no errors on your credit report. If you notice an error, contact the reporting service and follow their instructions for correcting it. Many credit reporting agencies will allow you to report disputes using an online form, saving you time and effort.
Improve your credit profile
There are also a number of steps you can take to improve your overall credit profile, including:
- Paying down outstanding balances
- Keeping balances low
- Paying bills on time
Remember, it's never too late to build good credit!
