How can you improve your credit score?
It's virtually impossible to change your score in the time
between when most people decide to buy a home or refinance
their mortgage and when they apply. So the short answer is,
you really can't "on the spot." But there are strategies
you can live with to make sure when you apply for a loan your
score is as high as possible.
Make sure that the information each of the three credit reporting
bureaus has on you is consistent and up to date. Order a copy
of your credit report about once a year, and dispute any inaccuracies.
Note: Theoretically, if a series of credit reports is requested
on your behalf during a limited amount of time, your score
goes down until time passes without any inquiries. Changes
in the law though have made "consumer-originating"
credit report requests not count so much. Also, a series of
requests in relation to getting a mortgage or car loan is
not treated the same as a number of credit card requests in
a limited time. This is because the credit bureaus, and lenders,
realize that people request their own credit reports to keep
up with what's on them, and smart consumers shop around for
the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don't count
against your credit report, so don't worry.
The two main components of your credit score are your payment
history and the amounts you owe. Bankruptcy filings and foreclosures,
which can stay on your credit report for as many as 10 years,
can significantly lower your score. It's never a good idea
to take on more credit than you can handle.
Late payments work against you. It's extremely important
to pay bills on time, even if it's only the monthly payment.
Dont "max out" your credit lines. Since the size
of the balance on your open accounts is a factor, lower balances
are better.
It's said that by carefully managing your credit, it's possible
to add as much as 50 points per year to your score.
F.A.Q
We offer a wide range of services including real estate sales,
financing, and property management. Call us today for a free
consultation @ 916-482-6899 or email us at fay@amerpropmgmt.com.
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