Steps To Get Your Credit Score Under ControlNcredible Credit
Your FICO score is important when it comes to buying a home. Your ability to qualify for a bank loan, as well as the terms of that loan, is dependent on your credit score, as is whether you’re able to finance or access your equity down the road. Whether you are buying a home or already own one, lenders want to see a positive FICO score that indicates good credit history. For this reason, FICO score is important even beyond the initial purchase of the home.
Credit repair can be a tricky business, and no matter how you choose to go about it, it generally takes some time to accomplish. But what if you need to improve your FICO score fast? Say you need a better score to get qualified for a line of credit, buy a new car or refinance your house. What can you do to raise your credit score quickly? Here are four steps you can take to boost your score for a multi-pronged approach to credit repair.
1. Check Your Credit Report
The first thing you need to do to start working on your credit is to give your report a thorough review. Be sure there are no errors, and get an idea of where you need the most work. You can get a free copy of your report once a year from each of the three major credit bureaus. Immediately take action to clear up any inaccuracies on your report.
2. Lower Your Debt-To-Credit Ratio
Your debt-to-credit ratio essentially describes how much your creditors were willing to loan you versus how much of that amount you’ve used. It’s also referred to as credit utilization. The lower the percentage of available credit you’re using, the higher your credit score. While you can help improve this ratio by moving balances around to reduce utilization percentages, raising your credit score is much more likely if you are able to pay down balances without creating more debt.
3. Pay Down Loan Balances
Lower loan balances can mean a higher credit score. Making extra payments or payments larger than the minimum as prescribed by your lenders can go a long way toward chipping away at your loan balances. If you’re aiming for a significantly higher credit score in a hurry, you might consider finding a way to obtain a lump sum of money to pay down your loans. Paying off large loans like car loans and mortgages can have a big effect on your debt-to-credit ratio.