I've talked a lot about credit scores and this won't be my last post. Why? Because it can be a deal breaker for your loan and I want you to get that home of your dreams! No one wants those surprises!
So, you got your credit score and it wasn't what you expected and you want it to improve, but where to begin:
1. Get a credit card....if you don't already have one. If you can't qualify for a card, talk to your bank about a secured credit card. Additionally, you want one that reports to all three major credit bureaus.
2. Installment loans...what are these? personal loans, auto, mortgage and student loans. Big improvements come to your credit when you pay these ON TIME. A small personal loan through your bank could pay off! Again, be sure they report to all three major credit bureaus.
3. Pay down those cards....pay off or down those credit cards. This has a greater impact on your credit score than paying off your car loan. When a creditor is looking at your debt, they like to see a big gap in the amount of credit you have available and what you are using. In other words, don't max out all of your credit cards. Getting your balance below 30% is good, 10% is AWESOME!!
4. Go easy on the use of your cards......even if you pay them off, don't max them out. Your credit card reports your balance to the credit bureaus; this can hurt your score if you get your balance high, monthly.
5. Check your limits....what is your limit? Check with your bank and make sure that is what they are reporting. If they have not updated it recently and they actually gave you a larger spending limit, say $5000, and you use $2500 a month and they are reporting that your limit is $3000, then it appears you are nearly maxing out your card monthly. It will pay off to check on this.
6. Old credit cards....use them. Creditors will sometimes close old/unused cards. The longer you've had an account, the better, so don't let it go dormant.
7. Doesn't hurt to ask....if you have a late payment on your account, try writing them a letter to see if they would be willing to drop it from your account, refer to it as a "goodwill adjustment". They don't always do this, but it doesn't hurt to ask.
8. Dispute, dispute, dispute....if you have some old collections on your account that you were disputing a long time ago, go to your creditor and dispute the charges. Sometimes companies have merged and there aren't clear records, so a credit bureau is willing to take it off of your record. Again, it is worth the time and effort to ask.
9. Things worth your effort:
a. late payments, charge-offs, collections & other negative items that aren't yours.
b. credit limits that aren't reported accurately
c. accounts that are listed as "settled", "paid derogatory", "paid charge-off" or any other comment than current or paid as agreed if you did pay it in full and on time.
d. Bankruptcy: if you have accounts that should be included in a bankruptcy still listed on your credit, this needs to be cleared and adjusted.
e. Seven years is the magic number....make sure nothing older than seven years is on your report. It should automatically drop off, but it is always good to check.
For more information, please visit: https://www.pinterest.com/pin/183873597264363962/
No comments:
Post a Comment