With a good credit score, you can get lower interest rates and better terms on credit cards and loan products. However, boosting your credit score overnight isn’t easy.
Here, our house buying programs advisor in Texas explains how you can improve your credit score:
Don’t close unused credit card accounts
The age of your credit history is important—a longer history is always better. If you’re still looking to close credit accounts, close newer ones.
Apply for new credit sparingly
While it amplifies your total credit limit, it negatively affects your score if you open or apply for several new accounts in a short time.
Contact your creditors
If you can’t afford your monthly bills or miss payment deadlines, do this instantly to set up a payment plan. By addressing your issues quickly, you can ease the negative effect of high outstanding balances and late payments.
Pay more than once in a billing cycle
If it’s feasible for you, start paying your bills every two weeks. This improves your score by lowering your credit utilization.
Set up reminders
Jot down payment deadlines for every bill in a calendar or planner and set up online reminders. If you pay your bills on time consistently, you’ll see your credit score improve by leaps and bounds within a few months.
Review your credit report
Do you know that you’re entitled to one free credit report a year from each of the 3 reporting agencies? Plus, it doesn’t affect your credit score in any way. Review every report closely. Dispute any potential errors you come across. This is one of the best ways of improving your credit score.
If there’s an error, even a simple one, and you spot it, you’ll be in a very good position. Some are simple mistakes such as accounting belonging to someone else with the same name, a misspelled name, etc. Other errors are costlier, like accounts with an incorrect credit limit or balance, closed accounts reported as still open, debts listed twice, accounts reported late incorrectly, etc.
Notifying the credit reporting agency of outdated or wrong information will not just remove the incorrect data but also improve your score.
Z Finance Solutions provide first-time homebuyer down payment assistance
There are many home buying assistance programs available. To find out exactly what is available, talk to Z Finance Solutions.
Get in touch with them directly for more information on their Texas home buying assistance programs!