How can you improve your credit score?
It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible. Please take a minute and read the rest of this page. It may make a difference the next time you apply for credit.
Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.
The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings, Foreclosures, Tax Liens and Judgements can stay on your credit report for as long as 10 years and will significantly lower your score. If you have satisfied a Judgement orTax Lien, copy the satisfaction and mail the copy to all 3 credit reporting agencies, so they can report the satisfaction on your credit report. On too many occasions, I have seen consumers let many years pass before the credit reporting agencies are notified of the satisfaction. Do it today!
Late payments work against you the most. It's extremely important to pay bills on time, even if it's only the monthly payment. If possible, NEVER exceed 30 days past due on any monthly credit payments. Most Mortgage Payments have a 15 day Grace Period" before you are charged with a late fee. As long as you do not exceed 30 days past due, it will not be reported on your credit report.
Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.
It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.
Beware of "Credit Repair" companies that charge an advance fee. Even though there are some reputable credit repair companies, most will take your advance fee and send you a Do-It-Yourself Guide.
To discuss increasing your credit score, please feel free to call me @ 800-433-0589 or email me with any questions or concerns you may have. I have been in the Mortgage Industry for many years and can work with you to increase your credit score by "Cleaning up your Credit Report". I will offer free advice and will not charge you a fee...
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