If you want to improve your credit score the time to start is now! Give me a call and I will see exactly where you stand and what to do to reach your homeownership goals. Here are some proven tips to improve your credit score fast!
1. Shrink Credit Card Debt
A surefire way to give your credit score a quick boost is to pay down existing debt on your credit cards. The debt you carry is the second most important factor used to calculate credit scores. The trick is to get and keep your balances below 30% of the credit limit on each card. For faster results, attack those cards with balances closer to the credit limit first. Remember, if you pay off any credit cards completely, do not close your accounts. Canceling cards may inadvertently undo all of your hard work!
2. Keep Credit Card Accounts Open
You may think you’re doing the right thing by closing lines of credit and swearing off all credit cards. This action does far more damage to your credit than you think. It’s always a good idea to reduce debt but closing accounts decreases the amount of credit you have available to you. This leads to lower credit scores. It’s best to keep the credit lines open. If you’re tempted to spend, cut up the card.
3. Get a secured card
Sometimes adding a credit card can increase your credit score. Secured cards are usually easy to get, even with damaged credit because you put up a security deposit for the card. Choose a well-known, reputable credit card company, and one that reports to all three major credit reporting agencies (you’ll establish a new positive credit reference). But don’t max it out!!
4. Pay Your Bills On Time
Late payments are very harmful to your credit and can take a long time to recover from. Payment history accounts for about 35% of your credit score. If you struggle with timely bill payment consider enrolling in auto-pay to ensure that your bills are paid on time every time. Scheduling a regular bill-paying time right after pay-day can be helpful too. Timely bill payment is key to a healthy credit score.
5. Correct Errors
If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute it free of charge. For the fastest results, visit the appropriate bureau’s website and file a dispute online.
Improving your credit score often requires a lot of patience. If you’ve made mistakes, they can be challenging to recover from, but it’s a doable goal. Of course, if you want to buy a home, you may not have a lot of time to boost your score. Call me to today (501.229.7145) or APPLY ONLINE to see what we can do to get you approved for a home loan. (Remember, I can approve loans down to a 580) Let’s make 2016 the year you buy a new home!!!
Call me today!