5 Tips to Help You Improve Your Credit

by Blake Music

So, you’ve decided that you are tired of renting that small apartment when you can get a nice home for close to the same amount of money that you are paying in rent every month. Who wouldn’t want to do that, right?

You have it all planned out and think you have all of your bases covered. You’ve figured out a budget (great!), saved money for a down payment (awesome!), researched real estate agents and searched for homes on Zillow until you were blue in the face (whew!). There’s just that one last piece -- your credit score.

Building a credit score is a lot like building a house of cards. It takes a lot of work and attention and they are frustratingly easy to mess up. Whether you’re trying to establish credit for the first time or need to rebuild your score, here are a few simple tips that will help speed up your process. 

1. MAKE ALL OF YOUR PAYMENTS ON TIME

Every single time. If you can’t, call the creditor and tell them that you won’t be able to pay by the due date. Letting them know that you’re struggling is always better than just not paying.

2. KEEP YOUR CREDIT CARD BALANCES BELOW 40% OF THE CARD LIMIT

Your credit card limit is set based on the perceived risk and likelihood that you will pay your bills every month. Therefore, the more that you charge every month, the less likely you are to pay off your balance. 

3. AVOID CREDIT PULLS WHEN POSSIBLE

Multiple credit pulls in a short period of time represents credit risk to a creditor, because it appears you are trying to open new accounts. And, the more money someone owes every month, the less likely they are to pay it off.

4. REVIEW ACCOUNTS FOR ACCURACY

Look over your statements every month to make sure that balances, charges, etc. match up with what you expect them to be. Also, once a year to receive you can request a free credit report from the major credit rating agencies. This is a good way to make sure that all of your credit history has been reported correctly.

5. OPT OUT OF BEING PRE-QUALIFIED FOR CREDIT

Call 1-888-5-OPT-OUT. This will stop all solicitation of credit cards and other credit offers that you receive in the mail.

 Want to learn more? Check out our blog post No Credit? Start Building It Today!

Keep these tips in mind to make sound financial decisions and you will be headed in the right direction in no time. If you have questions about getting your credit in line in order to finance a home purchase, you can talk to a Loan Officer or apply online today.

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