Tips On How To Improve Your Credit Score

green, gold and silver credit cards piled up

If you are hoping to buy a home, a good credit score is crucial. Without a positive credit score, you will find it difficult to procure a home loan. These tips will help get you on the path to improving your credit score so you can begin looking for property for sale.

1.   Check your credit report.
If you have no idea what your credit score is, or haven’t checked it in a few years, now might be a good time to get that information. It is one of the first steps you need to take if you wish to buy a house. Fortunately, once a year you can go to AnnualCreditReport.com. Thanks to the Fair Credit Report Act every resident of the United States is permitted a free credit report check once per year.

2.   Dispute any errors that you find.

a credit card accounting payment report has a calculator and pen on top of it

The United States Federal Government says that over 40 million Americans have an error on their credit report. In a lot of these cases, these mistakes lower their credit score by 25 points, sometimes more! If you find any mistakes after receiving your credit report you can dispute it directly with whichever creditor provided you with the information. You do not want to delay correcting this issue, your credit score affects everything from buying a house to getting a loan for a car. A lower score will make life that much more difficult.

3.  If you have any outstanding debt, negotiate to pay it off.
Unexpected events happen. Sometimes, a bill becomes too much of a burden and you can get behind on payments. If you have any outstanding debt you can communicate with the creditor asking them to negotiate with you to arrange a payment in a lump sum. Make sure that they agree in writing to report the debt as “paid as agreed” before you make any payment.

4.  Pay your bills on time.
in front of a circle clock with a gold frame is a stack of money shaped like a fan

This might seem like common sense, but you would be surprised how many people let a payment lag a month or two behind before paying. Repeatedly doing this will affect your credit score, lowering it. Try to cut non-necessities and get your bills under control.You will find trying to a buy a home or a car a lot easier if you do.

5.  Limit your credit card use.

Carrying a high balance can hurt your credit score whether you pay your bills on time or not. What’s usually reported to credit bureaus are the balances from your last statement. So trying to use your credit cards sparingly and keep the balance as low as possible so you aren’t accidentally sabotaging your credit score.

a black wallet with a red and gold credit cards in the holders

6. Try applying for a secured credit card.
If you find yourself starting over, and trying to rebuild your credit, a secured credit card might just be what you need. A secured credit card functions just like a normal unsecured credit card, the only difference is that it is backed by an upfront cash payment deposited by you. The cash is held as collateral in case you fail to make payments. You can buy necessities and incidentals, but you have to make monthly payments. You receive your cash deposit back when you close the account, making it an excellent way to build your credit safely and securely.

No doubt getting your own home is gonna cost you a hefty amount, and also you certainly don’t want to spend even more money so follow these tips to make your credit score better.