Wednesday, May 3, 2017

Tips for Fixing Your Credit

A strong credit score is a vital part of achieving financing on your new home.  The better your credit score, the better your interest rate and loan terms.  So what does this mean if you're credit score is less than perfect?

Don't let your credit score hold you back from buying the home of your dreams. There are things you can do to improve your credit score starting today!

1. Pull a copy of your credit report and look for errors. There can be errors on your report that can change the way your credit score is calculated.  Look for incorrect late payments or incorrect debt amounts owed.

2.  Continue to pay your bills on time. Set up reminders if you need to. Don't miss a payment or send in payments late.

3.  Begin to pay down debts whenever possible. Start with debts that have the highest interest rates first.

4.  Don't open too many new accounts or close inactive accounts.  Show stability in how your credit is maintained.

5. Keep your credit card balances low and pay them off each month as possible. Don't use too many credit cards. Just increase the credit rate on the current cards you used.

Improving your credit score will take time. It's not an instant fix but if you take the steps above you'll show banks that you are less of a risk and more likely to pay back your mortgage on time and in full.

No comments:

Post a Comment