Five Tips for Improving Your Credit Score
While it may be possible to finance a home with a low credit score, the process is going to be more difficult, your options will be more limited, and it will greatly affect the interest rate. If you're someone who would like to improve their credit score, here are some quick tips:
First: Check your credit report. Immediately alert the three credit bureaus about any errors you find.
Second: Reduce your debt. If you have credit card balances that are creeping up, pay those balances down. You may also be able to improve your score by replacing your credit card debt with a personal loan, known as installment debt.
Third: Pay your bills on time. Enroll in automatic payments or set up payment reminders to meet all due dates. Delinquent payments, even a few days late, could negatively impact your credit.
Fourth: Pay off fees. If you have outstanding fees, such as late or missed credit card fees, pay them immediately and avoid any future situations that may result in more.
Fifth: Don’t close unused credit cards. This approach to cleaning up your finances can impact your credit ratio, potentially lowering your credit score.
It’s common to see error corrections resolved in a short time frame. Paying down significant amounts of debt can sometimes drive your score up quickly. However, if you are in need of more than a few tweaks to fix your credit, it’s best to expect it to take a bit longer to see a significant improvement.
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