CREDIT TIPS: HOW TO RAISE YOUR SCORE

Author: Mohamed T Gulamali

​THE FOLLOWING WILL BE COVERED

1. What is a credit score
2. How to improve credit

What is a credit score: 

• Used by companies to determine interest rate and decision to lend
• Predicts the statistical chance of a consumer becoming late on a loan
• The score is generated by analyzing the information contained in the consumer’s credit report at that point in time; the components are on the next page.

HOW TO IMPROVE YOUR CREDIT

Pay down debt:	One quick way to improve the appearance of your credit is to decrease your Balance to High Credit ratio. Pay down the balance to 30% or lower of High Credit Limit  Call the current creditor and request them to raise your High Credit Limit.
Stay loyal to old accounts:	​ Creditors lower your score if you close a longstanding account. Creditors like stability, so keep old accounts.  The combination of closing an oldie and adding a new account will hurt your score twice.
Use retail store cards:	Retail cards are relatively easy to get and can boost your credit appeal.  These cards generally have lower credit limits, so they have little effect on your Balance to High Credit Ratio, which you want as low as possible.
Open a Secured Credit Card account:  Reports to all credit bureaus.​	Requires a deposit with bank may be necessary if you are unable to get qualified for credit cards due to your credit history
Perform periodic credit checkups:	Review your report from each of the three major credit bureaus at least once a year. (You’re entitled by law to a free annual credit report.)  Credit Karma is a good site to review your credit as it does not require any credit card info and provides you with your score from 2 of the 3 credit bureaus Dispute inaccurate entries with the credit bureau and request that positive data be added to your file.

Free Info:

• Free E-Book: Mortgage Basics The Guidebook
• WHAT TO & NOT TO DO AFTER GETTING PRE-APPROVED 
• A PRE-APPROVAL IS YOUR FIRST STEP  
• MORTGAGE DOCUMENT CHECKLIST 
• MORTGAGE: BASIC REQUIREMENTS & MISCONCEPTIONS 
• RENTING VS. BUYING A HOME PROS & CONS 
• HOW TO BUY A HOME
• WHERE BUYERS FIND THEIR HOMES  
• 10 MORTGAGE & PROPERTY TAX DEDUCTIONS 
• 4 BENEFITS OF HOME OWNERSHIP 
• 5 REASONS TO USE A BUYER’S AGENT