Five Actions to Take Right Now to Improve Your Credit Score
Good credit is vital in the home buying process. While credit repair does take time, there are some key steps you can take right now to improve your score. It’s important to keep in mind that your credit score is one of the primary factors lenders will be interested in.
1. Check Your Credit Report
Credit repair begins with your credit report. If you haven’t already, request a copy of your credit report. It’s free and doesn’t affect your score. Make sure you look at it closely and check for errors. Make sure there are no late payments listed incorrectly and that the amounts owed are correct. If you find any mistakes make sure you dispute them.
2. Set Up Payment Reminders
Timely payments are the backbone of good credit. They are absolutely one of the biggest contributors to your score. So, either set your payments up on autopay, or set a reminder for yourself to pay them. This will begin increasing your score immediately. It is a small action that can pay dividends later.
3. Reduce Your Debt
This is the hardest one but well worth your effort. When you pay down your debt, not only does it create peace of mind for you, it also increases your score. Make a list of all your accounts and what you owe, then set up a payment plan for yourself. Organize this by paying down the highest interest cards first while maintaining timely payments for the others.
4. Reduce Spending
If you’re able to reduce your overall spending it will free up some money to pay down your debt. Look at your weekly and monthly spending habits and see where you might be able to cut back. Even some small changes can mean serious savings over the course of a year.
5. Stay Positive and Have Clear Goals in Mind
It’s vital that you have a positive outlook on where you’re headed. Consider what your main goals are and take actionable steps, like the ones above, to move towards achieving your goals. Have faith in yourself that your hard work will pay off. We would love to talk over your goals and help you where we can.