02/16/2024
RAISE THAT CREDIT SCORE!!!
Buyers with good credit scores have a better chance at lower mortgage rates. Here are some tips for improving those scores.
If you intend to buy a new home, or if you intend to take out a loan in the near future for any other reason, you obviously want to have the best credit rating in order to get the lowest interest possible.
Here are some ways for you to improve your credit score:
Pay your bills on time. Whenever you pay a bill late, it can have a negative impact on your credit score. Use automatic monthly payments with reliable servicers.
Pay your credit card bill in full each month rather than carry a balance.
Keep your credit utilization below 30% of your credit limit. One way to do this is to ask some of your creditors to increase your credit limit.
Don't apply for too many new accounts. Even if you apply for a new account and are not approved, it can have a negative impact on your credit score.
Review your credit report, and dispute any errors. There are three credit-reporting agencies: Equifax, TransUnion and Experian.
At no cost, once a year, you can request a credit report from these companies. If there are any errors in the report that have a negative impact on your credit rating, ask for a correction to be made as soon as possible.
If your credit score is too low to obtain a new traditional credit card, you can obtain a secured credit card. With this type of credit card, a credit limit will be established, and you will have to prepay this amount in advance.
However, once you demonstrate that you can use this account responsibly, you should be able to establish new traditional credit cards.