Steps to Boost Your Credit Score

Steps to boost your credit score

If you have dents and bruises that caused your credit score to drop, you are not alone.

Boost your credit score and increase your chances of getting lower mortgage interest rate.

There are no shortcuts to boost your credit score, but there may be quicker ways to do it. You may have to make some sacrifices and sound financial decisions to offset previous damage done to your credit record. This may take at least several months. Remember that higher credit score may yield lower mortgage interest rate. 

Below are some steps to boost your credit score and increase your chances of qualifying for a favorable mortgage loan. 

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Check Your Credit Report for Errors

One way to boost your credit score is to regularly verify that the items listed on your credit report are correct. Pay particular attention to the negative entries. If there are mistakes, correcting them will help improve your credit. You can order free copies of your credit report at annualcreditreport.com.

Pay Overdue Bills to boost your credit score

Past due balances damage credit scores drastically. To help improve your credit, pay the debt off or negotiate a payment plan to get the accounts current. Once the accounts become current, they will stop adding negative entries to your credit report and can generate positive score.

Use Less of Your Available Credit

Maxing-out or carrying high balance on your credit card will not help your credit, rather it may damage it. Best practice is to try paying down the balances to less than 50% of your available credit. This helps boost your credit score. Another option is to request the issuing bank for a higher limit.

Don’t Close Credit Card Accounts

Closing credit card account lowers available credit, thereby impacting credit score. To help boost your credit score, keep credit cards active with very small balance. Set up the credit cards to auto-pay one or two small recurring bills.

Pay Bills on Time

If you pay your bills late, there is no plan to improve your credit that will be effective. This is because payment history is the single most important factor that impacts credit score. If you miss payment by 30 days or more, call your lender and arrange for payment plan.

Dispute Errors on Your Credit Report

Errors on credit reports can have a negative impact on credit score. Removing or correcting the error can help boost your credit score. If you find any errors on your report, dispute them immediately to have them removed.

Summary

The above listed steps are suggested to help improve or boost your credit score. Once your credit score improves, you will stand a better chance of getting approved for mortgage loan. For complete credit or financial advise, contact your financial adviser.

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Festus Okolie

Festus Okolie

I am a Texas licensed Real Estate Agent and Realtor you can trust. I provide hassle-free real estate services in Dallas-Fort Worth Metropolitan area in Texas. I help home buyers and sellers achieve their real estate goals. I take particular interest in negotiating deals to benefit my clients.

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