How You Can Improve Your Credit Score
Buying a home soon? Get the best rate by increasing your credit score.
Home prices in the Summit County real estate market are finally softening, making now a great time to buy a house. However, if you plan on submitting an offer, you need to ensure that your credit score is high to get the best rates possible. I want to help you with this, so here are five tips to increase your credit score:
1. Check for any inaccuracies in your credit report. Go to www.annualcreditreport.com for a free annual credit report. Look through your credit history and report any inaccuracies so they can be removed. Inaccuracies and negative credit ratings will influence your credit score—the higher your credit score, the better the rate your lender will provide you.
2. Request to remove past delinquencies that have been paid. If you had a negative impact on your credit score, such as delinquent payments, which have now been paid off in full, request that they be removed from your credit score to make it look better for lenders.
"Automate your payments to make sure that everything is paid on time."
3. Pay down high revolving balances. The farther you can move your balance away from your total credit limit, the better it is for your credit score. Lenders love to see that you have available credit but have not used all of it. Chip away at your high balances over time, especially if you're thinking about making a major purchase like a real estate investment in the near future.
4. Pay your loans on time. Delinquent payments will reflect poorly on your credit score. You can set up online automated recurring payments for all of your outstanding credit card bills to ensure that everything is paid on time.
5. Keep old accounts open. Even after you've paid the account balance down to zero, keep those accounts open. Your credit score will increase when you have more available credit.
Follow these tips to boost your credit score and get the best rate for your home. If you have more questions, call or email me. I can connect you to my favorite local lenders who can help you with your buying plans.