Improving Your Credit Score
Are you planning to move in the spring? Improve your credit score now before you apply for a new loan.
KNOW YOUR CURRENT CREDIT SCORE
How are you supposed to improve your credit if you don’t know your current credit score? There are many free websites to pull your credit score like creditkarma.com, experien.com, freecreditreport.com and many more.
DISPUTE ANYTHING YOU DIDN’T DO
When you take a look at your credit report, look for anything suspicious and activity that may not be accurate. It is important to act immediately on these issues and get them corrected to improve your credit score.
PAY DOWN BALANCES
Lowering your balances might be the toughest but best way to improve your credit score. There are many approaches to this. If you pay off your smallest debts first it can become encouraging to help you tackle the larger debts. Or you can go after the big debts first and the smaller debts are easier. Another approach is to pay off the debts with the highest interest rates first to avoid large interest charges. Find what works for you and get the balances paid off!
STOP USING CREDIT
Once you start paying off your balances, you do not want to use it unless necessary. It is important that your debt to income ratio is balanced if you are going to be looking at buying a new house in the spring.
OTHER CREDIT TIPS
- Set reminders in your phone or computer calendar to help pay bills on time.
- Apply for and open credit accounts only as needed.
- You can have credit cards but manage them responsibly.
- Closing an account doesn’t make it go away.
Improving your credit is an important step to buying a new home. Talk to someone at Princeton Mortgage for help with your new mortgage!