How to Raise your Credit Score
If you are thinking, "My credit is a mess. There is no way I would qualify for a mortgage!" We’re here to help.
First, I want to say that there are loan products out there for all different credit scores and yours may not be a barrier to buying a home. BUT a higher credit score will allow you to lock in a lower interest rate. Either allowing you to save money each month OR buy a nicer home for less.
Regardless of whether you are actively looking for a home or simply have home ownership as a future goal, the time to start taking action to raise your credit score should start now!
Here are the 5 best tips on raising your score with the least amount of hassle:
1) Verify an accurate Credit Report - Have a look at your free credit report at Annual Credit Report and make sure everything is accurate. If anything is incorrect, learn how to disrupt it for FREE here - Federal Trade Commission Website
2) Do NOT close old accounts. The length of time you have had accounts open and extra available credit that isn't used, helps to raise your score.
3) Pay down some high balances - If you have a few lines of credit with maxed out balances, try to knock down the balance by making extra payments BEFORE the statement date, that will lower the amount of debt reported, increase your amount of available credit and raise your score. An ideal credit usage would be below 30% of your available credit.
4) Pay all bills on time - This may seem like a no-brainer, but missed or late payments is the easiest way to drop your score and it's more difficult to fix as these will be reported for up to 7 years.
5) Don’t add any new debt - Unless you have ZERO credit history, do not open any new accounts.
If after taking all these steps, you still have a low credit score - OR - would rather get a full consultation from one of our partner lenders to get additional guidance to improving your credit score, shoot us a note using the form below and we will connect you with one of our trusted credit repair partners!
Brett Keppler
Broker | Owner | Agent at TREO Realtors, Cincinnati’s boutique real estate firm.
Reach out and let’s discuss how to make your real estate dreams a reality!
Let’s Chat! | 513-225-1790