subject: Increasing Your Credit Score [print this page] Generally speaking, today, you will need a credit rating of 660 before you can be accepted for a mortgage to finance the property you want to have such as a Plymouth real estate property. Several years ago, you just need to score a 580 and you can already get a loan for a house but banks and mortgage companies become very careful nowadays. So before you even start looking for Plymouth MLS or Plymouth Homes for Sale, if will be better if you take actions first to check your credit report and increase the credit score you have, especially if it is below 660. Getting a low credit score means not having a good loan. Or if ever you will be accepted to one, the loan will require you of a larger down payment or a very high interest rate. These are just two of the downsides of having a very bad credit score. It will really make a huge difference if you start improving your credit score several months before you buy a property. Here are some of the methods you can follow to make your score higher:
1.Pay your debs as early as you can
Lessening the amount of your debts can positively affect your credit score. Also, banks and lending companies prefer applicants with few debts. If you have loans amounting to 38 % of your income, banks are more likely to give you a mortgage. Make sure to put your delinquent accounts such as credit card bills in order so you will not have a bad record.
2.Do not be late with the payments.
After paying off all your credit bills and expenses, you have to try your hardest not to make late payments anymore. Being consistent and on time with paying your monthly bills can change your credit score and rating positively. You can even increase your score by 50 points within a year if you pay your bills always.
3.Check your credit report.
It is necessary and helpful if you can review your credit report annually. Get a copy of your report from three major credit bureaus in the country. Be sure to look at the details of every information presented in the documents because there can be misspelled, outdated or totally wrong information in there. A data is already outdated if it is seven years or older.
4.Correct the errors in the report.
If there is information that should not be in the report or there are minor details that got wrong, be sure to take the required actions for you to report it in the reporting company. You can write a formal letter of dispute stating all the mistakes included in the report. Agencies should be able to answer you back within 30 days after submitting the letter. To make the revision process faster, you can attach supporting documents and proofs.
