There has been an increase in positive data coming out of the housing market in recent months, and it looks as if we have finally turned the corner towards a recovery. Sure, there may be some road blocks along the way such as a lack of confidence in the job market or still tightened lending guidelines, but all the news suggests that 2013 will be a huge year for the Mass real estate market. If you want to be ready to take advantage of low interest rates combined with low sale prices, now is the time to improve your credit. A strong credit score is the backbone of all mortgage underwriting. The following tips will help you boost your score in just a couple of months and better position yourself for a smooth transaction.
- Know Your Credit: You can’t fix your credit it if you don’t know what’s wrong with it. You are entitled to 1 free credit report from each bureau annually. Review your report for misreported late payments, incorrect credit limits, and duplicate loans. Make sure to request corrections in writing.
- Keep Your Balances Low: It’s important to keep your monthly balances low on your credit cards. Even if you pay your debt on time, but carry a high monthly
balance, you are hurting your credit score and not reaching your maximum potential. If your credit limit is $5,000 and you owe $5,000, this will drag down your score. Keep the balance under $2,500. - Move Your Debt Around: Take a look at your credit cards and the debts you are carrying. Move your debt to cards with a higher available limit. Getting several cards to 25% instead of having one at 80% or a bunch of 0%s, is a fast way to boost your score.
- Add Available Accounts: If you have had a strong payment history with non-traditional credit this could be a great way to boost your score. Utility companies, internet providers, cell phone providers, and the telephone company are all non-traditional credit sources that can report to the credit bureaus upon your request.
- Request a Credit Line Increase: Improving credit is all about improving your credit ratios or your available credit. Paying down debt is one way but also consider requesting more credit. A quick call to the credit card company to free up additional credit and give your scores a quick boost.
This Post is “Mortgage Buddy Approved”
