Want to buy a house? Wondering if you can qualify?
We can help and now is the time to get started. Give us a call and we can review your credit situation and even pull a complete credit profile for FREE!
The major purchases you make, like a home or a car, are affected by your credit scores. Saving $35,000 on the average mortgage may be as simple as improving your credit score by 50 points. How amazing if you could put that savings into a retirement account?!
In the meantime, here are 5 tips you can utilize NOW to give your score a boost.
1. Get Your Report
The three main credit bureaus, Equifax, Experian®, and TransUnion®, are required by law to provide you with a free copy of your credit report once every 12 months. To request your free copy (one from each company) visit AnnualCreditReport.com or call 1-877-322-8228.
(Note: free credit reports do not include credit scores. Scores can be purchased on-line or pulled by your mortgage professional.)
While on-line, Visit www.optoutprescreen.com . Want to reduce the junk mail you receive and boost your score at the same time? Credit experts advise that by “opting out” will boost your score immediately.
2. Balance Your Credit
The goal is to keep your balances below 30% of your credit limit on each card.
For instance: If your limit is $1500 – try to keep the balance under $500. Do NOT close accounts without asking your mortgage professional first. Cancelling your credit cards can have an opposite effect and lower your score.
3. What is your Limit?
Make sure that your credit card issuers are reporting the correct limits on your accounts to the three major credit bureaus. If the CC is not reporting the limit or incorrect limit, your account will look like it is maxed out at its highest reported balance each month. This could cost you up to 80 points in certain cases!
Another way to increase scores is to ask the creditor for a higher limit. If you are a good customer, the increased credit limit will increase the gap in the debt you owe, versus the credit you have available. Sometimes… if you hint at closing the account, they will increase your limit. Give it a shot… The worst they can say is no.
4. Correct Coding
Your credit score is calculated based on the information given by your creditors. If you had a bankruptcy, make sure that all items associated with the bankruptcy are being reported correctly, Correctly would read a zero balance. If you have a HELOC, make sure it’s listed as a mortgage or an installment account on your credit reports and not a revolving debt. Having the correct coding can increase your score by 50-100 points. Removing Disputes on your credit is also very important.
5. Dispute ALL Credit Debt
Once you find information on your credit report that you believe is inaccurate or incomplete, Your next step is to dispute it with all 3 credit bureaus. If all this sounds like too much work, You can hire companies that will help (call us for references). Keep in mind, if you work with a mortgage professional that understands the process, you can do it yourself for free.
For the quickest results, visit the appropriate credit bureau’s website and file a complaint on-line. If supporting documents are necessary, you may have to file your dispute by mail.
When disputing ALL items, I mean every NEGATIVE item whether real or NOT. Each agency must let you know about the debt owed in a reasonable time or they must remove the remark in accordance with the law. Many requests sent to the credit bureaus are often not responded to because of heavy work load of the collection agencies. When this happens, the credit bureaus are required to remove the negative remarks whether legit or not – thus rising your credit score.
Simple mistakes like the ones above, can wreak havoc on your credit score, it’s important to monitor your credit every four to six months, especially if you are getting ready to make a major purchase like buying a home.
If you know of anyone that needs a little help improving their credit scores so they can qualify for a new home loan or they need help getting pointed in the right direction to repair their credit, feel free to contact me at 949 600-0944 with any questions you have. Just Ask Jackie 🙂