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Free Access: Real Talk Real Estate: 3 tips to improve your credit score for mortgages and more!

Whether you realize it or not, your credit score matters. I wish that just being someone who pays all your bills and carries no debt was enough, but it is not. Your credit score is how a myriad of companies determine if they will let you use their services and if they will require you to pay a deposit and how much!

This is one of those topics that seems underestimated until you find yourself penalized for something you really had no control over obtaining. Unfortunately, by the time you’ve got a problem, there is no quick cure.

To get a mortgage loan in the CSRA, local lenders require a minimum credit score of 580. I have 3 helpful tips to boost your scores and hopefully set you up with a little knowledge that will allow you to protect your score in the future.

TIP#1 – Check your credit report yearly. You can get a free report every 12 months directly from the 3 main reporting companies, Equifax, Experian, and TransUnion. Go to them DIRECTLY to get your report and make sure that there are no items reported as being in collections. If you have something reported, then follow the instructions to pay it off right away, or contest it and have it removed if it’s not your debt. You will be shocked at how often small unpaid items get recorded in collections.

TIP#2 – Make sure you are not “using” more than 30% of the unsecured credit available to you at any time. This may mean you need to pay some debts down, or maybe do a credit increase to get the ratio correct. Using credit is how you gain positive points but not all personalities can manage credit well. A safe way to use it is to change something you budget for and is a fixed expense. Then, pay that full balance off every month. Maybe gas for your car, or your power bill. Something you can easily manage to pay on time, not wasteful things you cannot afford!!

TIP#3 – Diversify and pay on time! It is important to use the credit you have wisely to start, and it is much easier to maintain your credit than to rebuild it! You get positive points for using multiple types of credit and paying on time! NEVER, EVER, FOR ANY REASON, pay anything re-porting to the credit bureaus more than 15 days late. For references on what types of credit there are, a car loan would be an example of a secured loan, and a credit card is a type of unsecured debt.

If you fall within the excellent score range, congratulations! If you are in the “needs help” numbers, you can start today to ensure the only direction that you are going is up! I believe that no matter where you are, there is always room for improvement. Decide on a range you want to fall into and commit to making it happen.

Exceptional 800 to 850
Very Good 740 to 799
Good 670 to 739
Fair 580 to 669
Poor 300 to 579

2 Comments

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  • Janine Garrapy
    Posted July 8, 2022 at 5:58 am

    Your articles are always helpful. Thank you

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