BOCA RATON, Fla.- This week saw a large drop in the average 30-year fixed rate mortgage interest rate. It now stands at 3.84%. The average for a 15-year fixed rate also declined to 3.07%. With rates this low, many consumers are working hard to improve their credit scores and creditworthiness in the eyes of lenders.
According to Howard Dvorkin, Consolidated Credit Counseling Services, 25% of clients say their goal is to improve their credit so they can purchase a home. This is up 16% from just six months ago. However, those who have recently dealt with unemployment or foreclosures could have to wait years to be able to qualify for a loan. Even if they are able to qualify, their rates will be higher than the average.
The best way to improve your credit score is to always pay your bills on time, resolve old cell phone contract disputes, and if you are thinking of buying a home, get pre-approved first. This will help you look at houses realistically and keep you in a home you can afford.