First Time Home Buyers: 5 Tips to a Top-Notch Credit Score Rating
First time home buyers pay attention: we're about to help you get your credit score mortgage-ready. The following is an article from a credit score expert, guest posting for AmeriFirst Home Mortgage.
Our credit score rating is affected by every financial decision we make. Sometimes we get ourselves in over our heads, racking up so much debt that we can’t afford to keep up consistent payments on our principal and accompanying interest. Every time we miss or are late with a payment, on any of our bills, our credit score suffers. Those bills include those from utility companies, service providers, doctors, and department stores to name a few. When we don’t pay a bill, that information is sent to the organizations that calculate our credit score rating.
The good news is that, even if currently have a bad credit score you can improve it. There is no magic cure, so don’t fall for scammers who promise to “fix” your credit score rating for a fee. It takes time and applied discipline to raise a credit score legally. You may have to change some of your bad habits, but the end result will be a more financially secure you. The following tips will help you to raise your credit score on your own, at no expense, if you apply them.
Improve Your Credit Score Rating Tip #1 – Pay More Than the Monthly Minimum
You should always pay more than the minimum monthly requirement if you want to improve your credit score rating. The credit bureaus don’t only consider how much debt you have, but how long it takes you to pay it off. There is no way of calculating exactly how much time is factored into your actual score, but it is, and minimizing it will boost your credit score rating.
Improve Your Credit Score Rating Tip #2 – Formulate a Repayment Plan
People who are going through difficult times are often not aware that creditors are often more than happy to work with them to formulate a repayment plan. The simple fact is that it is good for both parties involves, and the economy as whole. Negotiations are better for the lender as it is cheaper than having to hire a collection agency. The consumer gets to salvage their personal credit score rating, and the overall economic debt is lowered as well.
Improve Your Credit Score Rating Tip #3 - Exchange Credit Cards to Debit Cards
Your credit score rating reflects credit card debt more than just about anything else. The most effective way of avoiding it is to pay debts immediately with a debit card. A debit card only detracts from money that is already in your account. There is no credit risk involved; you can only use what is in your account. Be especially careful not to attempt to use more money than you have in your account, as this will significantly affect your credit score rating in a bad way.
Improve Your Credit Score Rating Tip #4 - Get Rid of Store Cards
Today’s wallets are designed to hold as many credit cards as we can accumulate. Many of the credit cards we own are from individual stores that give us in-house discounts for using them. Unfortunately, as much as these cards may earn us points with the stores that issue them, they have a profoundly negative effect on our credit score rating. The more cards we have, the lower our score will be.
Improve Your Credit Score Rating Tip #5 – Comment on Your Report
Occasionally you will find errors on your credit report which negatively impact your credit score rating. This could be the case of a lender failing to notify the credit bureau that you have repaid a loan, or a simple billing error that was not corrected. Your first course of action is to dispute those errors with the credit bureau and the creditor. What many people don’t realize is that there is a section for their own comments in their credit reports. This lets you explain why a debt has not been paid or to point out any incorrect facts. Though commenting won’t directly boost your credit score rating, they may be a determining factor in a lender’s decision to grant you that loan.
Today's guest post is from: Ethel Wilson is a financial and credit specialist with 12 years experience in the banking, credit scores, and financial industry. She has advised countless clients on how to improve their credit score rating. She shares the best of her credit score information as a contributor and editor of http://www.creditscoreresource.com
Download the free guide below to get your credit mortgage-ready.
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