The higher your credit score, the lower your mortgage interest rate may be. This will result in lower payments for your mortgage each month. Rates are the lowest they have been since the 1950's. Do yourself a favor and get that credit cleaned up ASAP!
As far as increasing your personal credit score, consider paying all bills on time, keep credit card balances below 50% of the max amount, don't open new credit, pay off old debt, pay down debt, dispute any negatives with the 3 credit reporting agencies. This should help you raise your scores.
You'll need a 620+ median score these days so you're almost there.
Here is a blog I wrote about ways to improve your credit scores that should really help you out.
The closer your credit score is to 700 the better your interest rate will be and the easier it will be for your loan to go through underwriting.
- Make your payments on your credit cards early and over the minimum payment amount.
- Keep your credit card balances no more than 50 percent of the limit. If you Credit card limit is $2000.00 then pay it down to at least $1000.00 and keep it there.
- Get a small personal loan from your bank and make it a secured loan if you need to. Then use it but pay it off the next month. (This way you will have a paid off personal loan showing on your credit).
Don't close all of your credit cards. You will need at least three loans and or credit cards showing up on your credit report to have a healthy score. Many people close their accounts and have whats called a "Thin Credit File", that does not have ENOUGH credit.