How to improve credit scores is a trick that everyone in today's real estate industry must understand. Sometimes a borrower or home buyer might not have the necessary credit scores to get approved for a home loan. Today, most banks and lenders require a borrower to have a middle credit score of 640 in order to continue with the loan approval process. For some borrowers, you may need 5 points. For others, you may need 100 points. Every credit profile is unique. However, building quality credit tradelines is extremely simple.
Here is a quick tip!
If you do not currently have any credit cards, then go open 2 or 3 immediately. If your credit scores are too low to qualify for a new credit line, then you can open secured credit cards through your local bank or through national banks. Once you open the cards, allocate one monthly recurring bill to each card.
For example, add your water bill to one card. Add your XM Radio to another. Then add your gym membership to the third card. Now, have your checking account automatically pay these cards off each month. You can have your credit card bills go paperless so that you are not bombarded with mail every month. Last, put the cards in a safe place. Do not keep them in your wallet! As Americans, we like to spend! Typically, if funds/credit is available, we well undoubtibly say "what the heck".
To the credit bureaus, you are using, paying off, and keeping your cards at a zero balance each and every month. This is great for building strong positive credit each month.