How To Improve Your Credit ScoreHow To Improve Your Credit Score
A good credit score is important when applying for home financing. Here are 7 ways you can increase your score:
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Pay your bills on time and in full.
Late payments can stay on your credit report for 7 years.
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Pay off debt and keep balances low on credit cards and other revolving credit.
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Dispute credit report errors.
You are entitled to one free credit report a year from each of the three reporting agencies. Requesting one has no impact on your credit score. Review your report and dispute any errors such as wrong or outdated information.
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Keep credit cards open.
Closing a credit card can lower your utilization which can lead to a lower score. Keep the card open and use it occasionally so the issuer won’t close it.
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Pay more than once in a billing cycle
If you can afford it, pay down bills every 2 weeks rather than once a month. This lowers your credit utilization and improves your score.
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Contact your creditors.
If you miss payment deadlines, and can’t afford your monthly bills, call and set up a payment plan immediately.
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Get a prepaid credit card.
Get a prepaid credit card from a bank for $200-300. Don’t overspend and use it to purchase gas and other small purchases. Pay the bill on time and you will get the pre-payment back in 6 months to a year, as well as a higher score.
Give me a call – Carrie Summers 970-759-2540. I’m here to help you become a home owner!