"What can I do to get more credit score up?", I just had a customer ask me this question in an email the other day. Her score is not terrible, but if it was a little stronger she would have more options!
If your wondering the same thing....I put together my top 3 suggestions to help you keep and raise your CREDIT SCORE in 2011!
1. Don't refinance until you KNOW your credit is clean! -
Make sure you clean up any small blemishes on your credit report before you start the refinance process. Even those small outstanding bills can cost you money at closing. Even a $20 bill to Blockbusters that's been turned over to collections can damage your credit score.
So do a little damage control and get your credit report beforehand. Get those items taken care of and wait a month or two (depending on how bad it was) before attempting that refinance or HELOC (home equity line of credit).
2. Make your current Mortgage payment timely! -
What late payment is going to hit your credit score the hardest?? Your MORTGAGE!! It's a fact. Stastics show that some agencies will take off more than 100 POINTS beyond what it would do for past due credit card payments if you are late on your mortgage payment.
Now that doesn't mean that if you make your payment early your going to get brownie points. Geoff Williams, co-author of Living Well with Bad Credit, says it may make a slightly positive impression on today's risk-averse lender, but it won't make a big difference in getting future credit.
3. Cool it on second mortgages and HELOCs
Drawing down a second mortgage or HELOC can have a negative impact on your credit score because 30% of your credit score is based on how much you owe to creditors. However, if you pay the loan on time, it will have less of an impact, says Winston.
Also, you can mitigate the credit score damage of a HELOC by staying within 30% of the limit.
If you keep these in mind this year, you will be keeping your CREDIT SCORE on track for 2011 and years to come!
For more information, you call email me at Paige@PaigeWalker.com or call me directly at 318-308-2121. I'm always happy to answer any real estate questions you may have.