5 Steps Towards a Better Credit Score – Get More Home
When it comes to finding the best mortgage, your credit score is a major determinant as to the kinds of rates and conditions you can get. Lenders quite understandably want to manage their risk. But for a number of potential homeowners, these practices and policies can be a barrier to home ownership. I have several lenders on my team in Chandler Arizona. Each lender mortgage broker or banker seems to have a niche. Having been an Ocotillo Realtor since 2003 I have learned to keep strong relationships with lenders and credit repair organizations. This enables you to buy a home and also get more home for your dollar due to lower rates.
The good news? If your credit score isn’t great, you can easily improve it and get better lending terms. Here are five steps you can take right now to give your credit a boost.
Get Your Annual Credit Report And Dispute Errors
Simply disputing errors on your credit report is one of the easiest ways to give your score a boost. The FTC says that 1 in every 5 Americans has errors on their credit report that have an impact on their score. By simply disputing errors on your credit report, you can give your score a small boost almost overnight. Most credit repair companies will find errors on your report, especially if your name is common, and also liens that have been paid off but the credit agencies were never notified.
Miss A Few Payments? Talk To Your Lender
If you’ve missed a payment and it’s more than 30 days past due, chances are your lender has already reported the missed payment. Once a missed payment is on your credit report, the fastest way to remove it is to talk to your lender. Get a written and signed agreement that if you pay the overdue balance, they’ll report the account as “paid in full.” Often the lender has nothing to gain from “dinging your credit” and some can be very reasonable.
Ask For A Credit Increase
Your credit utilization ratio – the amount of credit you’ve used compared to the total amount available to you – makes up 30% of your FICO score. In general, experts say that using more than 30% of your available credit can harm your score. If you can’t immediately pay down your debt below that 30% threshold, one great way to improve your credit utilization ratio is to ask for a credit limit increase. Don’t every close an account – intuitively we think that if we reduce our line of credit; it will put future lenders at ease. Let them tell you – for this almost always negatively affects your score.
Get A Co-Signer To Help
Having someone with good credit co-sign your lending agreement is a great way to improve your credit. When you get a co-signer for your credit card or car loan, the better quality credit line may help boost your score. Just make sure you stay on top of payments – otherwise both you and the co-signer will see your credit scores fall.
Keep Good Debts On Your Report
While it is important to review your credit report and have any negative items removed, you’ll want to ensure that any positive entries – debts you’ve paid in full – stay on the report. When your credit report shows debts as paid in full, your score increases because it shows that you’re a responsible borrower.
Improving your credit score doesn’t have to take years. These five strategies can help you to boost your credit and qualify for better mortgage loan terms. I have sold many homes in Chandler and Gilbert to people who thought they could never get a home. Sure foreclosures don’t look good on your record but when half the country has done it, lenders have re-assessed the scoring system with regards to this aspect of your credit score. Call me and I will put you in touch with one of my credit specialists as well as the lender whom I believe can be of most help to you. I have been selling homes in Ocotillo and a Chandler Realtor for a long time and once you read about my background in finance; I believe you will look forward to our chatting on the phone!