How to Improve Your Credit Score
Your credit score is very important when it comes to getting a loan for anything in life, but especially a home. There is a multitude of ways to improve your credit score along, but here are a few that we think are the most important to note.
Pay your bills on time. This is one of the higher-impact items when it comes to your credit score. Late payments and derogatory marks can have a huge negative impact on your overall credit.
Paying down balances. If you have a lot of built-up balances on multiple cards start working on paying those off. Chip away as slowly or quickly as you can because this will help raise your credit score as well. You also want to be sure that you are not too much of your available credit, the recommended is 30% or less of your available credit.
Avoid applying for new credit. If you are looking to raise your credit to get into a place to buy a home avoid applying for new credit during this time. When you do this it is called a hard inquiry which can affect your credit score. You should not be applying for new cards, looking into auto loans, or any other new forms of credit during this time.
Beware of promises of quick credit repair programs. This is something you want to avoid unless recommended by a realtor you trust. Often times this will not be something recommended because it is something that can not be fixed quickly. Credit scores are a delicate thing and may take some time to repair.
Credit is something that oftentimes scares people away from buying a home. However, there are tons of home-buying programs out there that cater to people with slightly lower credit scores. Talking with a professional about your options is always the best option. Don’t let your credit score be a deterrent to buying a home without speaking to a professional first.