So let’s say that you have found out that your credit score is low.
Credit Scores are an important part of the mortgage application process. Banks want to see your credit score so they can determine how you have handled debt in the past. Your credit score is an indicator of how likely you are to default on a loan or a credit card in the next 24 months.
Here is what you can do to raise your credit score.
1) Pay your credit cards on time – late credit card payments boost your interest rates and late payments get reported to the credit bureau.
2) Make more than the minimum payment each month.
3) Don’t carry too high a balance on your card. Try to stay under 30% of your credit limit
4) Don’t overspend to earn rewards or travel miles. It rarely pays off in the long run and can get you further into debt.
5) Beware of cards that promote low teaser rates as they might have annual fees attached or bump up to a high interest rate after the initial period is over.
6) Note the balance transfer fees if you are planning to transfer your balance from other cards.
7) Getting credit is good, but don’t spend more than you earn.
8) Make sure you can handle the monthly payments, especially if an emergency payment comes up.
9) Don’t open up too many lines of credit.
10) Be careful about co-signing on a loan or lending out your credit card, because ultimately you are responsible for the credit, even if someone else has abused it.
11) If you move, be sure to update your information with all your lenders to avoid late and missed payments, and higher interest rates and penalties
12) Not having any credit can be as bad as abusing credit. Apply for some cards and then pay balances off promptly. Then if you run into hard times and you need some credit, it will be there for you.
Don’t wait to take action – credit repair takes time and you need to start working on that right away. We can help you find the best credit repair option for your situation and can give you a personalized plan to help you raise your credit score in the shortest amount of time so you can get approved for the best loan at the best possible rate. Call me at (707) 763-6290 for a free no-obligation consultation.
Stop feeling bad about your credit and start healing your credit instead. Let us help put you on the fast track to good credit.