Whether you’re looking to buy a home or take out loans for school, having a good credit score is crucial to financing the things you want and need. Typically, scores below a 600 range have a harder time accessing great interest rates and experience low approval odds. On the other hand, credit scores in the 700 and above range are the crème de la crème of credit score approval odds. If you find yourself on the lower end of the credit scale and want to work your way to the top, Lend Plus reviews a few simple strategies to help you get there.
First things first, pull your own credit report. In order to repair your credit, you need to know what is on it. A soft report, like one from an online credit service, doesn’t affect your credit as opposed to a hard inquiry. Additionally, you are entitled to one free credit report per year. Familiarize yourself with the information on it and the basics of a credit score number.
Once you’ve pulled your report, review it for any errors or mistakes. A number of people have found that there are costly errors on their reports, thus bringing down their credit score. Reviewing your credit report will help you understand why your number is as low as it is. If you find any errors on your report, you have the right to dispute them and ask them to be removed.
Now that you’ve assessed your credit score, you’ve probably noticed that there are a number of issues on there, such as missed or late payments, maxed credit lines, etc. These types of issues are the reasons why your credit score is as low as it is. Going forward:
- Pay bills on time: A recent history of timely payments will eventually overshadow any late payment history you have on your report.
- Pay down credit card debts: Never let the balance of your credit cards reach more than 25-30% of your limit. Keep low credit card balances at all times.
- Vary your range of credit: Your credit should showcase a variety of style, from revolving credit such as credit cards to installment lines of credit such as loan payments.
- Don’t apply for new credit all at the same time: Whenever you apply for a new line of credit, whether it be a credit card or for a car loan, the lender accesses your credit report. Hard inquiries can drop your credit score by 5 points. All of this at once looks horrible on the report.
Going forward, the best way to maintain good credit is to be proactive instead of reactive. Staying on top of your credit score is a great way to become more responsible financially and even easily detect fraud. For more information regarding mortgages, financial tips, and financial programs, be sure visit Lend Plus.
The United States Housing Market accounts for roughly 15% of the country’s GDP. This number may seem low, but as the country is coming off a very volatile 2016, it’s fair to say that the housing market hasn’t had its fair chance to meet expectations. In fact, the housing market is far from immune to the highs and lows of the country’s economic troubles. Since the real estate bubble, banks have had a tight hold on lending standards and guidelines. Now, in the wake of all of this, it appears things are beginning to level out.