If you or someone you know is thinking about buying or selling real estate, one of the first questions to come up is: Is my credit good enough? Now, there are many options for loans even with bad credit or no credit, but if you are looking to improve your credit score as you look for the perfect property to purchase, here are some ways to do it:
1) Always Pay Your Bills On Time
Everyone has bills, and paying them consistently will add positive points to your overall credit score and profile.
2) Keep Your Balances Low
Every now and again, credit issuers will report your balances to credit agencies, this is how a credit reporting agency will know about your balances. In anticipation of this, it is suggested to keep balances at low if you are going to have a balance at all.
3) Maintain A Credit Utilization Ratio of Less Than 30%
What this means is, if between all of your credit being borrowed, let's say total is $10,000, you should be borrowing less than 30% of your total. So using our example, if you are borrowing less than $3,000 - you are good. This basically tells anyone looking that you can borrow up to 10K, but are only really using 3K, so it looks more likely that if you assigned a loan-you would be good for it.
4) Tackle Your Debt
So, let's say you are borrowing more than 30% because you are in a lot of debt. So start with one and work your way down the list. It is suggested you start with the highest rate card or loan. This may seem daunting but take it one step at a time.
5) Avoid Using Your Credit Cards To Pay For Large Purchases
It can be very tempting and easy to want to use credit card for large purchases, but unless you can pay the card off right away - do not do it. It may take you longer than you think to pay off the card and the interest will eat you up.
Join next week as we expand more on the topic of Credit Score.
Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
1) Always Pay Your Bills On Time
Everyone has bills, and paying them consistently will add positive points to your overall credit score and profile.
2) Keep Your Balances Low
Every now and again, credit issuers will report your balances to credit agencies, this is how a credit reporting agency will know about your balances. In anticipation of this, it is suggested to keep balances at low if you are going to have a balance at all.
3) Maintain A Credit Utilization Ratio of Less Than 30%
What this means is, if between all of your credit being borrowed, let's say total is $10,000, you should be borrowing less than 30% of your total. So using our example, if you are borrowing less than $3,000 - you are good. This basically tells anyone looking that you can borrow up to 10K, but are only really using 3K, so it looks more likely that if you assigned a loan-you would be good for it.
4) Tackle Your Debt
So, let's say you are borrowing more than 30% because you are in a lot of debt. So start with one and work your way down the list. It is suggested you start with the highest rate card or loan. This may seem daunting but take it one step at a time.
5) Avoid Using Your Credit Cards To Pay For Large Purchases
It can be very tempting and easy to want to use credit card for large purchases, but unless you can pay the card off right away - do not do it. It may take you longer than you think to pay off the card and the interest will eat you up.
Join next week as we expand more on the topic of Credit Score.
Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
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