Your credit score is a key factor that lenders consider when determining what Las Vegas mortgage rates to offer. Generally, you’ll need to have a credit score of at least 620 in order to meet the qualifications for a mortgage. However, you may be able to secure government-backed home loans Las Vegas with a lower credit score. If you want to get the best possible mortgage rates, experts recommend having a credit score of no less than 760. However, most people find that they have some work to do if they want to meet that number. If you are among them, there are several things that you can do to improve your credit score. To start, you can request a credit report from the three major credit bureaus, which are TransUnion, Experian, and Equifax. You can request a report for free once per year from each of the lenders. The detailed report will provide some insight as to what you might need to do to improve your credit score, including:
- On-time credit card payments
- Low credit card balances
- Mixture of loan and credit card accounts
- Minimal credit inquiries
Conversely, there are some actions you can take that hurt your credit ratings. That includes missing credit card payments or not paying bills in full and on time, having high balances on your credit cards, judgments, and making numerous new credit inquiries.
Most lenders use the FICO credit score system to determine your credit score. Credit scores in the FICO system consist of five main factors, including your credit usage, payment history, credit mix, new credit inquiries, and the age of your credit accounts. Of all the factors evaluated, your payment history is considered to be the most important.