How To Increase Your ScoreYou could most likely pre-approve you for a loan amount higher than what you anticipated or feel comfortable taking. Sit down and figure out what size of loan payments you are comfortable with and let your mortgage professional and realtor know, that way you are not shopping out of your comfort zone.
If you are approved for a $500,000 loan but really are only looking for a $250,000 mortgage, make sure you are looking at houses that fit that lower limit. You do not want to take out a mortgage so large you are beans and rice for the next 20 years and can’t afford a new furnace or insurance deductible, if and when those unexpected costs come up. Unless you pay for all of your expenses with cash, your credit score will determine what type of loan and interest rate you will qualify for. Your mortgage, car loans and credit cards are all determined by your credit score. The higher your score, the more likely the bank will be to trust you on repaying the loan. Your credit score can also affect your ability to get a job, find an apartment, or even get insurance. They are used more than people realize, so maintaining a high credit score can really benefit you in many cases. If you’re in need of a loan from a bank and would like to ensure you get the best rate possible, there are ways in which you can raise your credit score rather quickly. Assuming you’re paying your bills on time and you have no huge red flags, such as a bankruptcy, here are five other ways in which you can increase your credit score in as little as just a few months. |
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1. Take a look at your credit reports
Pull your credit reports from the three national credit bureaus – Equifax, Experian and TransUnion. Make sure everything is accurate and if it’s not, get it taken care of immediately. Typically, accounts that are in collections remain on your credit report for seven years, so if it’s been longer than that and you still see those items being reported, make sure to call and have it removed. You can get your credit reports every year for free or if you fill out an application at www.ryanmnashHL.com I can pull them for you and we can take a look together.
2. Pay off as much debt as possible
If your credit cards are maxed out, paying them down can help raise your credit score quickly. While it may seem impossible to come up with the money, if you get creative, you will find ways. You can start a side business driving for Uber or Lyft. You can sell items you no longer use on Craigslist or Facebook. You can also pick up a part-time job or perhaps even borrow the money from a trusted friend or family member.
3. Have your credit limits increased
After you’ve paid down as much debt as possible, call your credit card companies and ask if they can raise your limit. This increases your total available credit and reduces the percentage of debt to available debt that you have, which looks good to lenders. But, you will want to keep the balance below 30% of the card maximum anything higher then that and it will drastically hurt your score.
4. Use your credit cards responsibly
It’s a catch-22, but in order to have good credit, you need to use your credit. Using your credit cards regularly and paying them off in full each and every month is a surefire way to boost your score. If you don’t like the idea of putting all of your monthly expenses on the credit card, perhaps you can put only your gas on the card. In addition to helping your credit score, using a credit card responsibly can also give you added bonuses such as rewards points, cash back or frequent flyer miles.
5. Ask to have items removed
Maybe you made a late payment on your mortgage two years ago or perhaps you stopped making payments on your credit card because your income went down last year. Call the creditor and ask if there’s anything that can be done to have that 30-60 or 90 day removed from your report. You may have to pay the balance in full or write a letter explaining what happened, but if it works, your credit score will be instantly boosted and there is absolutely no harm in trying.
Once your credit score is where it needs to be, you have to continue working to maintain your high score. Keep your debt down, automate your payments so you won’t miss any and pay off your credit cards in full every month. Also, pull your credit report on a yearly basis (AnnualCreditReport.com does this for free) to check for any errors and dispute them immediately.
Pull your credit reports from the three national credit bureaus – Equifax, Experian and TransUnion. Make sure everything is accurate and if it’s not, get it taken care of immediately. Typically, accounts that are in collections remain on your credit report for seven years, so if it’s been longer than that and you still see those items being reported, make sure to call and have it removed. You can get your credit reports every year for free or if you fill out an application at www.ryanmnashHL.com I can pull them for you and we can take a look together.
2. Pay off as much debt as possible
If your credit cards are maxed out, paying them down can help raise your credit score quickly. While it may seem impossible to come up with the money, if you get creative, you will find ways. You can start a side business driving for Uber or Lyft. You can sell items you no longer use on Craigslist or Facebook. You can also pick up a part-time job or perhaps even borrow the money from a trusted friend or family member.
3. Have your credit limits increased
After you’ve paid down as much debt as possible, call your credit card companies and ask if they can raise your limit. This increases your total available credit and reduces the percentage of debt to available debt that you have, which looks good to lenders. But, you will want to keep the balance below 30% of the card maximum anything higher then that and it will drastically hurt your score.
4. Use your credit cards responsibly
It’s a catch-22, but in order to have good credit, you need to use your credit. Using your credit cards regularly and paying them off in full each and every month is a surefire way to boost your score. If you don’t like the idea of putting all of your monthly expenses on the credit card, perhaps you can put only your gas on the card. In addition to helping your credit score, using a credit card responsibly can also give you added bonuses such as rewards points, cash back or frequent flyer miles.
5. Ask to have items removed
Maybe you made a late payment on your mortgage two years ago or perhaps you stopped making payments on your credit card because your income went down last year. Call the creditor and ask if there’s anything that can be done to have that 30-60 or 90 day removed from your report. You may have to pay the balance in full or write a letter explaining what happened, but if it works, your credit score will be instantly boosted and there is absolutely no harm in trying.
Once your credit score is where it needs to be, you have to continue working to maintain your high score. Keep your debt down, automate your payments so you won’t miss any and pay off your credit cards in full every month. Also, pull your credit report on a yearly basis (AnnualCreditReport.com does this for free) to check for any errors and dispute them immediately.