Is there something I can do that will improve my Credit Score in Katy TX?
This is the fourth article in what I am planning will be 10 blog series of Frequently Asked Questions by Clients. I just had this question asked earlier this week and I promised a potential client who now lives outside the US I would write this blog and send him the link.
Credit scores typically range from a low 350 up to a high of 800 and the agencies use several criterion to determine anyone person’s credit score. There are NO quick fixes for a poor credit score. All of these items are my own personal idea based on my own research and experience. There are no guarantees that if you follow all of these tips your credit score will improve. However, I recently had a client who on her own followed almost all of my salient suggestions and within 3 months her and her husband’s credit score had improved significantly and they bought a home using me as their agent. Her Mom has worked many years in the credit function for a Credit Union and I am sure my client picked some of these points from her. Frankly, I was astonished and very happy when she called and said they ready to buy a home and they now qualified for a home loan. She had never asked for help from me.
1) If your credit score is too low today then sit down with your spouse or significant other or other family members. At this sit down meeting create a working plan and allow 6-9 months for the action points to have an impact on your credit score and your ability to qualify for a mortgage. My point is to create a plan and follow the plan for a set period of time before approaching a mortgage expert to see if you qualify
2) Pay all of your bills on time or early. This is actually fairly easy with today’s ability to pay almost any bill via the internet. Create internet accounts and set up recurring payments with the bigger reputable venders. No Jonny’s hot Dog stand is not what I am talking about but someone like Sears, Best Buy, etc. are big companies who will allow stopping automatic payments if you want to do that someday in the future.
3) Eliminate using checks as much as possible. Pay vendors who do not accept internet payments with a credit card or better with cash. I just had my identity stolen and they somehow got a hold of my checking account number and routing number plus my Texas Driver’s License number.
4) Pay down credit cards and eliminate all credit card debt as soon as possible. If you use a credit card have enough money in your budget to pay it off during the applicable billing cycle. You may need to consider consolidating your credit card under one or at most two cards.
5) Get rid of excess credit cards by formally in writing cancelling the excess cards. I personally would advise keeping the cards which have the highest credit limits as one statistic used by the bureaus is the ration of current credit card debt versus available credit.
6) Carefully examine your credit report (meaning you have to obtain the report) and look for any errors. These reports are loaded with errors and sometimes these errors can significantly lower your credit score.
7) If you find any errors contact all three of the major credit bureaus of the errors in writing via their own forms which they provide on their web site.
8) Do not make any significant purchases such as a car, boat, motorcycle, etc. and do not open any new credit lines with anyone.
9) If you are at the planning stage today call me and I will send you some names of potential mortgage loan officers who will be able to determine when you will actually qualify to obtain a mortgage loan.
Yes there is something you can do to improve your credit score in katy TX.