9 Ways to Improve your Credit

How to start credit repair to buy a home: 9 Strategies to Improve your Credit 

Credit scores are a financial tool and, in some cases, the most crucial measure of your financial picture. If you have a higher score, it is easier for you to get approved for the new loans or the lines of credit. When purchasing a home, it is imperative to get your score as high as it can be. It will be the way to acquire the lowest available rate when you borrow, and it can determine your capability to manage debt. At the bottom, you'll see the 9 Ways to Improve your Credit.

The credit repair industry has gotten mixed reviews over the years, so we try to take the time to explain the process so that each client undergoing the process understands how it works. Also, empowering clients to take their finances into their own hands has proved beneficial to help them fix their credit on their own.

Establishing a credit score will help you save money to make your financial life easier that’s why it is essential to maintain a good credit score. In this post, I am going to cover how to start credit repair to buy a home. We have used this proven strategy over the last five years to help women obtain homeownership.

Here is a little education about how credit works and is measured. 

FACTORS CONSIDERED IN CREDIT SCORING

Credit Mix

A credit mix refers to different credit accounts you have, such as credit cards, cash loans, car loans, mortgages, and more.

You are responsible for paying your loans on time. Having a missed payment can cause you a disagreeable background, and it will drop your credit score by 90-100 points.

Credit History Period

This includes the time length of your credit, and if you own credit cards, they will be evaluated from your oldest card to the newest. Having long-term credit lines is essential in building a solid credit score.

Application of Credit

Multiple credit accounts with a bad history can affect your rating and if you apply for new credit, expect that you will be flagged for opening a new credit account.

Owed Money

The more significant the amount of money you owe, the less likely you get approved for a new credit account. You want to have a debt to available credit ratios balanced. Typically when building credit, have it to 10% and when maintaining, have it in the 25-30% range. 

Credit repair,  how long does it take?

Improving your credit score can take several weeks or months to see a noticeable impact on your score. Boosting your credit score is also a great goal, especially when planning to make a big purchase like getting a new home or a new car. Take a moment to check your credit; it can improve your financial pictures vastly. 

Does credit repair work? 

It’s time for you to learn the right and effective ways to improve your credit score. A lot of people ask does credit repair work? I think it works when you make it a priority to change your thoughts and behaviors. 

One of the best resources for credit repair is Myself Credit Repair. There are several letters for credit repair once you are registered, and it allows you to fix your credit on your own. 

Tips for credit repair come a dime a dozen but here are 9 ways to improve your credit score today.

9 WAYS TO IMPROVE YOUR CREDIT SCORE

• Catch up with your Past-Due Bills

Late payments remain on your credit report for seven years. If you are behind on your bills, bring your current account as soon as possible. The sooner you can catch up, the minor damage to your credit.

• Don’t Miss your Payments

One of the most critical factors in determining your credit scores is your payment history, and having a long record of on-time payments can help you achieve an excellent credit score.

• Limit Applying New Accounts

You must limit how often you open an account. Sometimes the application can lead to a hard inquiry that will hurt your scores a little.

• Pay your Account Balances

Revolving credit accounts such as credit cards and credit lines can result in a high credit utilization rate that will hurt your credit score. Maintaining low balances can help you improve your credit score.

• Keep Old Accounts Opened

Don’t close your old credit accounts if you are not using them. Closing your credit cards when you still have other card balances will lower your available credit.

• Track your Progress using Credit Monitoring

Credit monitoring is a service that tracks changes in borrowers’ behavior to inform you about potential fraud and changes to your creditworthiness.  I love using Identity IQ

• Borrow What you can Afford

You must create the habit of charging only what you can afford; this will help avoid excessive debt.

• Maintain Good Credit Score

If you carry a balance, you must pay more than the minimum each month to pay off your balance as quickly as possible. Also, avoid making late credit card payments and keep your balance at a very reasonable level.

You can take a moment to examine your credit score to see what you can get removed from your credit report. Much old derogatory information could be lingering on your account, and it’s essential to get those items removed.

Listen, I have been in lousy credit land. I know so much about credit because I had to repair my own after years of not knowing how. Take some time to educate yourself on this. You will appreciate it in the long run.

It is possible to improve your credit score by following those effective, simple ways. I created the Impactfully Wealth Digital Planner as a step-by-step guide to help you build wealth and get your financial house in order. Grab a copy today and join our community of women improving their financial education to gain wealth!