Credit Score and Repair

Have you been dreaming about the possibility of buying a home for your family? If you have a rough financial history, then it might seem like your goal of owning a home will be impossible to achieve. But, there are many things that can be done to fix your credit score so that you can qualify for a new home.

While there isn’t an “instant” way to fix your credit score, there are a few things that you can do to improve your credit score in a month or two. Here are a few ideas to help you get started:

Set Aside the Credit Cards

Racking up more credit card debt will have a negative impact on your credit score. A large part of your credit score is based on a calculation that looks at your amount of debt compared to the limits that are available on your credit cards. The best solution is to keep the spending to only one-third of the credit that is available.

Automate Payments

Missing payments or sending payments late will reflect in a bad way on your credit report. If you forget to send the payments that are due, consider the benefits of setting up automatic payments so that you don’t have to worry about it every month. You can avoid missed payments and create a history of reliability.

Negotiate Debt Payoff

Talk to your lenders and find ways to pay off your balances faster. There are times when a conversation can help you remove a mark for a late payment or speed up the payment time so that you can improve your debt-to-income ratio and fix your credit score.

Inspect Your Credit Report

Lenders aren’t the only people who can look at the details of your credit report. Request a copy of the report for yourself so that you can identify any potential errors. A report in 2013 by the Federal Trade Commission showed that 20% of consumers have an error on their report. Fixing these errors could help to boost your score.

Avoid Applying for New Credit Lines

Opening a new credit card could have a negative impact on your credit score. You will run into problems if you apply for multiple forms of credit in a short period. Each time a request is made, it causes a credit inquiry to happen. Too many inquiries could cause your credit score to be dinged.

Stay Consistent

Changing your spending and debt payoff habits can have a long-term impact on your financial future. These things will help to boost your credit score, but it is important to make sure that you are staying consistent with your efforts.

Do you have questions about buying a home for the first time? We can help you fix your credit score and improve your credit so that you can get the financing that is necessary to buy a home. Learn more by calling DUFFY Realty at (678) 318-1700