When the littlest member of your family gets close to becoming mobile, it’s time to baby-proof. Some people might enlist the help of a professional, but many take on the task themselves. If&
5 Ways to Improve Your Credit Score
Dated: September 6 2018
It is important to improve your credit score prior to getting a mortgage. You will improve your chances of getting approved by cleaning up your credit report and increasing your credit score. If your credit is already good, maintain it or if you can, make it better to increase your chance of getting a lower interest rate.
Get your credit reports
This is the first step on improving your credit score. Check your credit report to see if there is anything that’s hurting your credit. This will show your detailed history of credit accounts including the date you opened them, the current balance, and the payment history for the account.
Try to get a copy of your credit reports from all three credit reporting agencies- the reports might vary. Plus, you’ll never know which credit report the bank will pull.
You're entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. Order online from annualcreditreport.com, the only authorized website for free credit reports, or call us at (907) 720-4663 and we’ll assist you with this!
Dispute any errors
Once you have the reports, be sure to check all the details on it. It is not uncommon to find errors that could be dragging your credit score down. It may be caused by simple mistakes or even due to criminal identity theft.
Get rid of any inaccurate information by disputing it with credit bureau and make sure to provide proof to ensure the mistake is removed from your history.
Pay off balances
Payment history has the largest impact on your credit score so it is better to get current on any accounts that are delinquent. Contact collection agencies to ask if they are going to remove the account off your credit report if you pay them. You can negotiate with them to remove some charges and collection accounts from your credit report or to negotiate with them by paying for deletion.
Try to lower your debt-to-income ratio as much as possible to prove your ability to pay mortgage payments in the future.
Do not add any more debts
If you are applying for a home loan, avoid getting additional loans or even filling out a new credit card application. Stay away from any new credit transactions until after your mortgage has been approved. It can make your lender suspicious about your financial stability.
Never give up
So your credit score may be far from perfect but it does not mean it will be forever that way! Cleaning up your credit reports is a work in progress so hang in there. Owning a home is a dream worth achieving.
If you think you are ready to find your dream home, check out our homes available for sale here.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....