A higher credit score can save you thousands when buying a house. However, your credit score may not be enough to qualify you for a mortgage. Many home buyers want to improve their credit scores. You can improve your creditworthiness, whether you are like many Americans with poor credit or want to get the best home loan deal. Let's look at some common sense ways financial professionals recommend to improve your credit score.

Pay Your Minimum Balance Promptly

Credit card companies can make a profit on your credit card balance. So make sure to pay your monthly dues. Even better, limit your spending to what you can afford to pay back at the end of each month.

Reduce Your Balances

A monthly contribution of $20-50 will reduce your overall debt. Additionally, paying more looks great on your credit score.

Do Not Spend The Entire Amount

It doesn't make sense to have $100 left on a $10,000 credit line. Lenders consider the amount of credit that you have available and then calculate how much of it you have used. This means that if you have a $1,000 credit card and you have spent $900 on it. This is 90% of your available credit. It's a lot worse than a $200 balance on the card.

Reject All Offers For Credit Cards

Don't apply for new cards and lines of credit right before you go home shopping. If the clerks offer you a discount for opening an account, you should decline. Banks won't turn their backs on multiple Inquiries about new credit.

Check Your Credit Report For Errors

You should also check your credit report for errors. It is crucial to do this. Items that are simply not disputable can remain on your credit report for as long as ten years. Even if you have bad credit, you may still be able to obtain a mortgage - view our resource page on getting a mortgage with bad credit.

By disputing items on your credit report, you put the wheels in motion to clean up the report and get a better mortgage. The credit bureau will contact the creditors to try and get the disputable items removed from your credit report. If the creditors don't respond within 30 days, the item will be removed from your credit report. Of course, you can also contact creditors directly.

Do Not Close Any Of Your Credit Cards Accounts

Did you know that credit scores are affected by the length of credit history? So keep your credit cards with a track record of timely payments open even if they aren't being used anymore.