Many times Buyers need to increase their Credit Score before purchasing a home.
Below are five simple methods that can help ......
1. Know your credit score and what's on the credit report. Remember to get a copy of the three major reports because information on each one can differ.
2. Pay bills on time! Even paying 30 days late a few times a year can have a serious negative impact on your credit score. Late payments can stay on the credit report for up to two years.
3. Increase the limits on your credit cards. This is probably the fastest way to improve your score and can often be done over the phone.
4. Maintain a low total debt load percentage. Keeping your total debt to approximately 20 - 25 percent of your credit card limit.
5. "Repair" negative items on your credit report. Write a letter to credit reporting agencies to dispute negative aspects of your credit report, late payments etc. The agencies must address anything you report immediately and if they cannot verify the information in 30 days, it must be removed from the report.
These tips will improve a credit score drastically and help you obtain better financing terms when it comes time to make an offer.
Good luck!
Comments(17)