3 Ways To Improve Your Credit Score

Credit Score - Mortgage LaGrange GA

Mortgage LaGrange GA – Jeff Wilmoth

Bad credit is something that many people face, but it doesn’t have to be a deal breaker when you’re trying to get a mortgage.

As a LaGrange mortgage professional, I am dedicated to helping people get the best mortgage they can. Even if your credit score isn’t great, there are ways to improve it so that you can get approved for a mortgage.

As you may know, a person’s credit score is one of the major factors that lenders consider when people apply for a loan. A lender can help you get a loan if you have an average rating, but a great score obviously makes it much easier to accomplish.

If you have bad or not-so-great credit, consider these three ways that can help you improve your credit rating:

1.       It’s good to have old debt on your credit report

Keeping old debt on your report can benefit you. In doing so, you are essentially telling the bureau that you have had existing debts that have successfully been paid off.

Think of it this way: if you have old debts taken off your report, they obviously will not be displayed on anything. This will make it seem as if you never had debt that was subsequently paid off. Keeping previous debt on your report makes it looks good by showing that you once owed money and have paid it off, resulting in a higher credit rating.

2.       Don’t be late with payments

If you don’t want to be charged any late fees or interest fees, or you don’t want to see your credit rating decrease, it’s critical to make your payments when they’re due.

If you do this, you will avoid additional charges and boost the odds of getting approved by a lender as you will have a respectable credit score. For example, if a lender were to look at your credit report and see that you’re consistently making late payments, you may be identified as a risky client to deal with.

3.       Make payments multiple times per month

You’re not the only one keeping an eye on your credit!

Authorities conduct monthly checks on your report, leaving the chance for them to see the balance on your report (rather than a new, updated one) and submit that number to the bureau. This can make it seem as if you still have a big chunk of debt to pay off when that’s not true. This could lead to you having a high utilization ratio even though you are fully paying the balance.

So, how can you fix this? One method to prevent this is to pay an amount to your credit twice per month. This way, you can reduce the balance of the card and even avoid being charged a potential late fee.

There are a variety of methods to boosting your credit rating. This is just a few ways you can do it.

If you don’t have a great credit score, contacting a LaGrange mortgage professional like myself is a great way to start increasing it. No matter what your mortgage needs require, I am here to help.

For more information, contact me today!

Source: http://www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx