Struggling to increase your credit? Here are some simple ways you can improve your score.
Today we’ll be looking at how you can boost your credit score in 2019.
Before you begin improving your credit, find out what you’re at by using a free credit score service online. Some banks, as well as our mortgage company, will also be happy to pull your credit for you.
Now that you know your score, it’s time to establish a goal. The highest goal you can achieve here is an 850 credit score, which is perfection. This would mean that you have no dings on your credit and have everything a lender or credit score company could ever want.
As you approach the glorious 850, a good target to reach first is 750. With this score, you’re pretty much on your way toward qualifying for a mortgage. This is a goal you can reach in a realistic amount of time.
Here are some tips for improving your score:
- Set up automatic payments. 35% of your credit score comes from your payment history, so setting up certain bills to be automatically withdrawn ensures you won’t forget any payments. Some good starting points are your home, vehicle, and utility payments.
- Buy now and refinance later. If your credit score is high enough that you qualify for a mortgage loan and you know your score will increase in the near future, go ahead and buy a home whenever you’re ready to. You should be able to refinance your loan for a lower interest rate later on when your score has risen.
- Watch your credit limits. One major thing that dings credit, aside from missing payments, is maxing out available credit. So if you have credit cards or credit lines, know that credit bureaus do not look favorably on when you max them out. Try to stay under 30% of your credit limit.
If you have any questions or need more information, feel free to reach out to us. We look forward to hearing from you.