Lets Get Your Credit Score On The Upward Track

Lets Get Your Credit Score On The Upward Track

Image titleWhat is holding you back from buying that house you've always wanted? 

If it's your credit score, then here are some tips to make that climb to a higher score

  1. Pull all 3 credit reports on annualcreditreport.com (Equifax, Experian, Trasnunion). You can pull them for free every 12 months or you can use creditkarma.com

    1. Check for any errors

      1. Correct them with each Credit Bureau 

    2. Check for late payments

      1. Did you make this payment late or was there an extenuating circumstance. Write the Creditor (company that extended the credit to you) a letter. Explain that it was not late or the circumstances that made it late. Sometimes they will remove the late payment which can gain you points on your credit score.

    3. Check for collections

      1. Are these correct? Were they paid already? 

        1. Work out a settlement , but be sure to request that the company agrees to delete that collection from your credit report once satisfied. Get them to supply you something in writing confirming your agreement prior to making the payment. 

  2. After verifying all info on your credit report and disputing anything you can, start making a list of your debt. 

    1. All credit cards should be kept under 30% of their credit limit. For example, you have a $1000 credit limit, that one should be under $300 in order to achieve this 30% credit utilization. 

    2. Credit cards should not be paid off In full unless you have been doing so every month. If you get a lump sum of money, pay the card down over the course of a few statement cycles so that the bureaus don’t think that you had a debt consolidation.

    3. Don’t close credit cards. This can lower your overall credit limits and can shorten the time you have had credit available to you, which is bad. On the flip side, don’t open tons of new credit cards just to increase your overall available credit. If you pay off an credit card, try to put something small on it each month and pay it off. Show that you are using it responsibly. Tip: if you have been a good customer on a certain account, you may request a rate reduction that sometimes is granted 

    4. It’s also good to have different lines of credit: mortgage, credit card, car loan, line of credit, etc. 

    5. Pay your bills on time, even if it’s only the minimum payment. Hint: Setup auto draft for the minimum required payment monthly and then apply extra towards it if desired, this way you know you’re covered.

    6. Think about your purchases before you make them. Do you need this item/service or would you money be better spent paying the debt down or saving for a downpayment?

    7. A common misconception is that you can hurt your score by checking your credit. If you are the one pulling your credit, then your score is not affected. If you have a car company, credit card company, mortgage company, etc. pull your credit, this creates an inquiry on your report and could hurt your score. If you are shopping for a car or home, a few pulls in a few month period are usually okay. Be cautious of auto loans because when they shop the “best rate” for you they may check with up to 10 companies, each with a hard credit inquiry.

  3. If you don’t have the time to do this or think it might be a bigger job than you can handle, consult a credit professional. They can help to dispute and remove errors from your report. They also coach you through how to pay down your debts. If they are offering a debt consolidation, it’s usually too good to be true and I would be wary of those. If you need a recommendation for a reputable credit repair agency, please contact me.

Once your credit score is sitting pretty, give us a call and we will help you find the house of your dreams. As a general target for credit score, there are many types of loans, however most should be accessible with a 640 score or higher. 

Melissa Shafirovich Headshot
Phone: 504-231-1140
Dated: February 28th 2018
Views: 106
About Melissa: I am a born and raised New Orleanian. The culture has been ingrained in my life since before I can r...

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