Atlanta Real Estate - Credit Repair Tips

If you have bad credit, then you might think that it is hopeless to apply for a mortgage. Is it possible to get home financing if you don’t have a good credit history? The truth is that there are things that you can do to improve your credit score and quality for a home mortgage, even if you have dealt with credit issues in the past.

Credit Repair Takes Time

Unfortunately, there isn’t anything that you can do to automatically change your credit score overnight. These things take time and consistency, so you need to set your goal and keep up with regular debt payments. Some people hope that they can do one or two things to automatically increase their credit score within a short period of time. The truth is that your credit score is an indication of not only your present financial picture but also your past behavior.

Tips for Repairing Your Credit

Here are a few things that you can do to get your credit back on track again:

  • Monitor Credit Card Balances: How much of a balance are you carrying on your credit card? Higher levels of revolving credit will impact your credit score. Pay down the credit card balances to keep your debt ratios low.
  • Get Rid of Small Balances: If you have any lines of credit with a small balance, such as a small phone bill or an old credit card, it is best pay off the balance as quickly as possible. Limit your credit card spending to one or two cards if you want to improve your credit score.
  • Submit Credit Applications at the Same Time: When you apply for credit, it might cause a small dip in your credit score, so it is best to cluster your credit applications all at the same time. If you want to explore financing options from several lenders, then it is a good idea to submit all of the applications within a day or two.
  • Don’t Miss Payments: Always make sure that you are paying bills on time and making the payments in full. Late payments will drop your credit score, and missed payments can be even more damaging.

Other Financing for Buying a Home

There are other financing options available that you might consider if you can’t qualify for the mortgage that you need. For example, you might be able to talk with the seller about a lease-to-own option. In this situation, you might be able to move into the home and lease it for a certain period of time. Then, you can buy the property after your credit is strong enough for you to qualify for the mortgage that you need.

For more information about getting the right financing to buy a home, contact Duffy Realty of Atlanta. We have a list of vendors that offer financing services, and we will gladly help you explore the options that are available to help you buy a home. Contact us for more information: (678) 318-1700

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