Credit Score Improvement For Buying a Home
As a realtor in Western North Carolina, I have come across several people who would like to puchase a home but can not until they can get their credit score high enough. Many are first time home buyers who would like to take advantage of the first time home buyers tax credit by closing on their home by November 30, 2009. Lenders of course use credit scores to predict the likeliness a loan will be repaid on time. The top contributing factor for a credit score is your payment history. The following list is valuable information for anyone who needs to improve their credit score. The free annual credit report is your first place to go, so as to determine what your needs are and if any corrections are necessary. www.AnnualCreditReport.Com for your free annual credit report.
The activities to "Do" for improving your credit score are listed below. (Unless advised otherwise by your lender).
Pay bills on time.
Keep your credit cards and revolving credit balances below 30% of their limit.
Request a bank raise your credit limit if it will benefit your credit ratio.
Pay off debt instead of moving it around.
Pay down quickly credit lines that are closer to their limits before paying down the ones below 30% of their limit.
Check your credit score immediately and complain about inaccuracies.
(Your checking will not affect your credit score).
Limit inquiries made into your credit history by others.
Make sure all credit bureaus have your good credit information.
Keep credit cards to four or less.
Know your credit limits so as to not appear maxed out.
Make sure home equity is reported as a mortgage and not a revolving debt.
Make sure balances from a previous bankruptcy (if any) are zero.
Stay with the same employer if you are seeking credit.
Make a continual effort to improve your credit over time.
Discuss with mortgage professional before closing accounts.
(Closed accounts still show up on credit reports.)
After paying high interest credit cards off continue using occasionally.
Be careful of credit repair specialist. (Choose a legitimate and reputable firm).
Know that paying 2% each month (minimum) at 10% interest will take 18 years to pay off $3,000.
The Do Not activities for improving your credit score are listed below. (Unless advised otherwise by your lender).
Do not close unused cards as a short term method to raise your score.
Do not increase credit limits by opening new accounts.
Do not max out balances on credit cards.
Do not allow accounts to go to a collection agency.
(Try to work payments out with your lender).
Do not keep changing residences if renting.
Do not procrastinate on credit score improvement.
David Craven
Beverly-Hanks and Associates
DCraven@Beverly-Hanks.Com
www.WaynesvilleHomes-ForSale.Com
www.HomesForNC.Com
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