8 Ways to Improve Your Credit

By
Real Estate Agent with Keller Williams Realty Diamond Partners, Inc.

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

I will be happy to share more ways to improve your credit quickly so you can take advantage of the present market. Contact me today and we'll get going! Thanks Great credit!

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Rainmaker
777,768
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Matt,

Thanks for the info.  This is a very hot topic these days and we are all dealing with buyers who could use this info.

Thanks again.

Michael A. Caruso

Mar 11, 2008 07:50 AM #1
Rainmaker
433,985
Maria Holland
RE/Max Homes & Estates, ABR,GRI, CDPE, SFR - Nashville, TN
Realtor, ABR, GRI, CDPE, SFR
Great advice.  I have one to add.  If you have managed to put your credit cards to the limit, and you are able to pay them off either through the refinancing of your home or winning the lottery, then you can pay off your credit cards and do a rapid re-score.  It is an expensive process, however, it can help you avoid waiting a year to be able to obtain a mortgage.  This is provided that the reason your credit is low is due to maxed out credit cards.  Otherwise, the rest of your credit report needs to be pretty clear.  Just FYI!
Mar 11, 2008 07:55 AM #2
Rainmaker
284,006
Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent
thanks for the post, people need to know this information good job sharing
Mar 11, 2008 07:57 AM #3
Rainer
5,304
Matt Hecker
Keller Williams Realty Diamond Partners, Inc. - Olathe, KS
Thanks guys!  A very hot topic indeed.  I just think that if you can do something re: your credit and take advantage of the present market, then why shouldn't you?  "I help you help me!"     I am actually, Maria, going through a transaction right now where the rapid re-score is coming into play.  If you are just a bit shy as far as the credit score is concerned, you can, for instance pay off a card [semi-]substantially, or maybe get a courtesy removal of a late payment on a credit card and then use the rapid re-score to bring up your score and sucessfully obtain a loan.  It costs $25 per around me, but it's worth it in the long run.  Anyway, just some more FYI.  Thanks folks!  -MH   
Mar 11, 2008 10:42 AM #4
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Rainer
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Matt Hecker

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