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Buyers: Boost Your Credit Score With These Tactics
Buying a home is a huge financial undertaking. Before you think about applying for a mortgage, you will want to have your credit in order. The higher your credit score and having a stable financial history are key factors in being able to get an affordable loan. Our real estate agents can help you rebuild your credit and get you in line to buy a new home in six months to a year.
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Know your credit score – Credit apps are available from the main credit bureaus and other financial organizations that give you free access to your credit scores for easy monitoring. While you only get your credit reports free once a year, you can check your credit scores at any time.
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File disputes when you find inaccuracies – When you go over your credit reports, you may find a few inaccuracies. File a dispute and ask to have the false information corrected or removed. Check your credit reports at least once a year for accuracy.
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Look for suspicious activity on your credit reports – You can request to be notified any time someone applies for a new line of credit. This gives you the option to approve or deny the request and will prevent fraudulent activities. Scammers look for credit reports that don't see a lot of activity or disputes. Putting flags on your credit report will show people you are actively monitoring your accounts.
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Don't apply for any new lines of credit – If you are trying to get a mortgage, a new line of credit may overextend your borrowing ability. Instead of opening a new line of credit, ask for an increase in your credit limit. If you are looking for Bergen County homes for sale, new lines of credit may work against you, especially with the housing market being so competitive.
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Keep your old credit cards active – Keep your old credit cards active. Make a small purchase each month and pay them off or carry a small balance. This keeps your existing credit lines open without having to apply for new ones.
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Pay off small amounts – If you have any small outstanding debts, pay them off and get them removed from your credit report if you can. Paying off small loans will show a positive payment history and give your credit score a boost.
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Always pay on time – Always pay your bills on time. Even one missed payment can show a considerable drop in your credit score. If you set up auto-pay, make sure to pay them a couple of days before they are actually due.
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Increase your credit limits – Instead of applying for new lines of credit, ask for an increase on your existing lines. This shows you are in good standing,g and the credit companies consider you a low risk.
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Keep your balances low – Keep your balances low and manageable. Avoid charging more than you can afford. It will prevent you from missing any payments.
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Pay more than the minimum – Whenever you can, pay more than the minimum amount due. This pays off the principal, and you will pay less interest over time.
Your credit is the determining factor in what type of terms you will be eligible for when applying for a mortgage. Start early if you are trying to rebuild your credit, and you will be ready to buy your home in no time at all. If you have questions about rebuilding your credit, contact one of our agents today!
Corporate Headquarters
7 E Central Ave, Unit 15, Pearl River, NY 10965Phone: 800-ASK-JOYCE (800-275-5692)
