HOW TO BUILD YOUR CREDIT SCORE AND BUY YOUR FIRST HOMEINTRODUCTIONGreat Credit Scores are part of the essential pieces one has to put together before a mortgage lender considers a borrower for a loan on agreeable terms.This article shall examine ways you can build your credit score or improve your credit ratings.When you understand your credit score, you're in a position to oversee your credit health efficiently.This understanding allows you to evaluate how much of a credit risk you are and gain insights on lenders and their motivations.If you're in the market for a home and in search of a lender, you must have heard about the notorious credit report. You are also probably aware that your credit report can make it break your loan application. But even at that, you may still not know what goes into a credit report talk less of knowing what to do so that your credit report presents you in a good light.WHAT'S INSIDE A CREDIT REPORT?Well, a credit report tells an eloquent tale of how you manage your finances. Your Credit Report spotlights your credit history as it has been ferried to the credit-reporting agencies by lenders who gave you access to credit in the past.Your credit report will enumerate the types of credit you use, the length of time your accounts have been active and the frequency with which you pay your bills.After perusing your credit report, a lender gets a sense of the amount of credit you have used in the past and whether or not you're hunting for new outlets of credit.Meanwhile, even though each credit-reporting agency has its native information reportage system, they all essentially carry the same kind of information.Your credit report will reflect your name, social security number, date of birth and employment records. These highlighted details are known as identifying information.They don't contribute to your credit score as they only reiterate the information you gave to lenders who have extended you credit in the past or are currently extending you credit.Your credit report will also feature your credit account(s) and information incidental to it.It will also show a list of everyone that has had access to your credit rating in the past 2 years.These inquiries are categorized into both voluntary and involuntary inquiries.The voluntary inquiries are request initiated by you while the opposite is true for involuntary inquiries.Note that your credit report will also carry public record information available in State and County Courts. These records include foreclosures, bankruptcies, liens, judgment debts, suits and wage attachments.It's not unusual for credit reports to contain errors of commission and/or omission, so that means you need to check out for mistakes on your credit report and correct them. Errors on your credit report can make a lender reject your application or charge you high mortgage rates.The popular credit score among lenders is the FICO SCORE. FICO SCORES range from a low of 300 to a max of 850.You should now have a functional grasp of what Credit Scores are all about. Let's now explore the things you can do to improve your credit score.HACKS FOR IMPROVING CREDIT SCOREFirst, embrace financial discipline. Clear up any past debt now and learn to pay your bills promptly.Second, if you have issues with paying your bills in a timely fashion, talk to your creditors and see if you can work out a pragmatic payment arrangement that suits both parties.Third, consider dumping your credit card for a debit card for a while and do not close unused accounts, if you have any, as those zero balances can come in handy when calculating your credit score.Closing ThoughtsA great credit score is great news for your loan application. When you want to buy your first home, use the tips explored in this article to understand and improve your credit score. You'll be glad you did.

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