Increase Your Credit Score

Increase Your Credit Score

To get the loans needed to secure real estate, you’ll need to increase your credit score as much as possible. The higher your credit score, the better off you will be when it comes to getting loans. The good news is that there are several ways to boost your credit score, although some efforts will take time. So, be sure to start as soon as possible and expect to wait a month or more before the full effects are reflected on your credit score.

Remove Errors & Old Information

You will need to look over your credit history to ensure that all the information is correct. Quite often, there is information that is out of date or even false which is holding back your credit score. You can alert the agency that the information needs to be removed with the appropriate proof and it will be gone from your credit score once approved. For some, this will significantly improve their credit score while for others it may not have much of an impact. In either case, it is important that you keep your credit score current and free of misinformation.

Minimize Your Outstanding Balances

How much you owe, even if it is still lower than your maximum balance on credit cards for example, has a negative impact on your credit rating. Even by reducing the amounts by a few hundred dollars, you can make a significant impact on your credit rating. Look for ways to reduce what you owe so that your credit score can go up. You may want to take out a low interest loan that covers the amount owed so you pay it off for less money.

Use What You Have, Not What You Can Borrow

Credit cards are certainly handy, but not necessary for many purchases. The less you pull each month from your credit cards, the better. Get a debit card to pay for everyday expenses such as groceries, gas, and the like. Only use your credit cards when needed for bigger purchases. A few pulls on your credit card each month will not have an impact on your credit score. However, six or more in 30 days will have a negative impact, so you will need to reduce that if possible.

Update

Each day that you are late in making a payment is one more hit on your credit score. You will need to get up to day and make payments on time so you can avoid any unnecessary damage. Being current with your accounts means paying them off when they are initially due, not 30 or 60 days later. Once you catch up, you’ll start to notice your credit score rising as well.

There are many ways to increase your credit score, but you will need to employ as many as possible if you are considering a real estate purchase. Of course, it’s a good idea to improve your credit score regardless of your future investing plans. A little time and patience will be your main assets when addressing the needs of your credit score.