Repairing a Damaged Credit Score

Wednesday April 8, 2020

Repairing a Damaged Credit Score
Repairing a Damaged Credit Score

Your credit score determines your financial opportunities when investing in a new home. If you have a poor credit score, you may be turned down from a loan or mortgage or get higher interest rates. This is because your credit score signifies your ability to meet your financial commitments. It is a shame to pay more just because you don’t know how to manage your score properly. The following are tips to improve your credit score so you get the credibility and benefits you want out of your next investments:

  • Review your credit reports.The three major credit bureaus, TransUnion, Equifax, and Experian, are each required to give you one free report per year. Access them here: TransUnion: https://disclosure.transunion.com/dc/disclosure/disclosure.jsp Equifax: https://www.equifax.com/personal/credit-report-services/ Experian: https://www.experian.com/consumer-products/free-credit-report.html
  • Note the negative judgments on your report.
  • Dispute erroneous or fraudulent statements on your report. You’ll be surprised by how common it is to find game-changing mistakes that jeopardize your credit score.
  • Pay your bills on time. Set up automatic monthly payments if necessary.
  • Avoid maxing out your card.
  • Pay off high-interest, newer accounts first.
  • Keep the same credit card and accounts for as long as you can. Avoid closing accounts, even if you don’t use them often.
  • Avoid opening multiple accounts at once, as this makes you appear risky.
  • If possible, ask your bank to increase your credit limit.
  • Understand the importance of the ratio of available credit and used credit in your score.
  • Having more used credit than available credit is less healthy.
Helpful resources: https://www.inc.com/jeff-haden/12-simple-steps-to-repair-your-credit-and-increase.html https://www.lexingtonlaw.com/credit-repair/fix-credit We hope these tips help you keep a healthy credit score for your next investment! Want to learn more from someone on Our Team? Feel free to Contact Us. We're happy to help.

About Me
  • Craig Tann Broker
    huntington & ellis, A Real Estate Agency
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