Are you going to be applying for a mortgage soon so that you can buy a home? If so, you should do whatever you can to improve your credit score. A higher credit score can increase your chances of being approved for a mortgage. You’ll also get access to the best possible interest rates to keep your mortgage as low as possible. Here are some simple ways you can improve your credit score.
1. Perform a Credit Audit
When is the last time you sat down and took a look at your credit report? Create a list of your accounts, limits, balances, interest rate and negative items. If you need help working your way through this process, we can help. We perform a credit audit for you and uncover areas where you can potentially improve your credit score.
2. Remove Negative Erroneous Information from Your Report.
There is a decent chance you might have errors on your report that could be dragging your credit score down. According to the Federal Trade Commission, about 20 percent of Americans have at least one error on their credit reports. By finding errors and filing formal disputes, you can have errors on your credit report removed by the credit bureaus. Knowledge of the Federal Credit Reporting Act and the Fair Debt Collections Practices Act is essential and if you don’t have time to learn the laws hiring a credit repair company can benefit your score.
3. Pay Down as Much Revolving Debt as You Can
Paying down a large chunk of your debt is one of the easiest ways to improve your credit score. With so many myths out there about credit card utilization its usually difficult for people to know how much they should pay down to get their desired credit score. Generally, 10% of your limit will give you the best credit score possible. But if you need help to figure out the least amount of money for the best credit score our Homebuyer program includes a credit score simulation that can help.
4. Settle Outstanding Debts.
After the items on your credit report have been investigated and the errors have been removed, there may still be accounts reporting adversly against you. This is a great time to settle the outstanding collections and charge offs with open balances. This can help improve your credit profile showing that all adverse accounts have been paid!
5. Ask Someone with Excellent Credit to Add You to Credit Accounts
Do you have a parent, a spouse, or a best friend with excellent credit? If you think they would trust you enough to do it, ask them if they would consider adding you to their credit accounts as an authorized user. This will open up the amount of available credit you have in your name. You should obviously not betray your loved one’s trust and use their credit. But by simply adding you as an authorized user on their accounts, they’ll help to increase your credit score in no time.
Improve Your Credit Score Fast with our Homebuyer Program
If your looking to purchase a home in the next 6-12 months think about using credit repair services to improve your credit score. A credit report specialist can lead the way and show you how to boost your credit score before you begin the home-buying process. Contact us today to find out more about how our credit repair services work.