Do you plan on buying a new house? If you do, you have probably researched all the necessary steps you must take before getting approved for a home loan. But what if your credit report is bad and you think there is nothing you can do to improve your credit score fast enough? Our latest blog dives into 11 tips to accomplish your goals!
If you are new to the homebuying game, there is a high chance that you never even had to check your credit report. The process isn’t complicated – there are several online places that you can find out what your credit score is for free. Luckily, there are ways to improve your credit score and to do it fast. Here are 10 tips.
Dispute Any Errors
Although rare, errors can happen on your credit report. This is why it’s important to always get your yearly credit report and to review it carefully. The quickest thing that can improve your credit score is to simply dispute any errors or outdated information on your credit report. As soon as the false information is removed, your credit report will improve.
Make Payments on Time
This one probably goes without saying. The best thing you can do to improve your credit score and to keep it high is to pay every debt on time. Set your monthly reminders if you are too busy to remember everything by yourself. Even if you were late on a few payments in the past few years, paying your bills on time can raise your credit score in just a few months.
Pay More Than One Bill at a Time
When you have had a pay increase or a hefty bonus, it is nice to spend it on something that you have wanted to buy for years. However, a smart thing to do would be to pay your bills once again. Even if you have a mortgage, try making two payments a month. This will help you to raise your score and lower your credit utilization.
Communicate With Your Creditors
If you lost your job, went through a divorce or had any other financial struggle, it is okay to contact your creditors to ask them to help you make a new payment plan for your monthly bills. If you address your problems on time, you can still save a good credit report by keeping the damage to a minimum. This will help you to raise your credit score faster after following other steps, as being on the same side as lenders will surely benefit you.
Don’t Apply for a New Credit Unless Necessary
Sure, new credit will increase your total credit limit, but any time you apply for a new credit you are risking making damage to your existing credit report. If possible, don’t even take new credit cards before your loan is approved. Also, don’t close your unused credit cards. The age of your credit history is important, so the longer you’ve had it – the better. If you have to close some credit account, try closing the newer ones. This perhaps won’t help improve your credit score, but it will prevent you from mistakenly lowering it.
Check Before Paying Off Old Debts
Sometimes, creditors may charge off the old debt. In other words, they have marked that they do not expect further payments. If this has been done, and you make the payment, not only that you won’t improve your credit score, but you will lower the credit utilization rate.
Diversify Your Accounts
Yes, we have said that it’s not smart to apply for any new credit score when you plan on applying for a mortgage. However, a lot of people don’t know that having diverse accounts will in fact improve your credit score. This maybe isn’t good for a quick fix, but it will help you in the long run. Mix car loans, credit cards, student loans and mortgage, as this counts for 10% of your overall credit score. Just make sure that your payments are on time!
Get a 0% Interest Card
Some companies offer cards with 0% interest on balances, but this isn’t without flaws. For example, a lot of these cards have fees for transferring the balance. This is why this offer is only good for a short period of time, usually 12 to 18 months. This can help you raise your credit score fast, but these cards usually require that you already have a good credit score to begin with.
Quick Loan Shopping
This is considered to be a last resort option. If you can’t find any other way to raise your credit scorer, try taking a ‘quick loan’. These loans are usually for small amounts – up to $1000 – that serve as a repayment history that is reported to credit agencies. They can improve your FICO, but keep in mind that this will only make you further in debt.
Use a Debt Consolidation Plan
Enrolling in a debt consolidation program will usually lower your credit score for a brief period of time, but it may be helpful in the long run. They will help you to make a plan for eliminating the initial debt that lowered your credit to begin with. Again, this is one of the last resorts and you shouldn’t just jump into it without trying other options first.
Sell Your House to a Direct HomeBuyer
Are you considering selling your house fast to get rid of debt? There is a way. Working with an agent and listing your property on the MLS takes time, but there are ways to avoid all of this. If you work with a direct homebuyer, such as Sparks Property Investors LLC, you will be able to sell your Milwaukee house fast, sometimes in as little as 7 days. If you don’t want to deal with financing issues that comes with the traditional buyer, Sparks Property Investors LLC has the ability to pay in cash. This means you get the money that will help you repay your debt and improve your credit score quickly, giving you a chance to finally live debt-free. If you are looking for a way to sell your house fast, we at Sparks Property Investors LLC are ready to buy your unwanted property in Milwaukee, Wisconsin for cash! Contact us today! (262) 288-0580