How can you improve your credit score?
With home loans the middle credit score of the 3 major credit bureaus is "King". This number has been referred to as "FICO" score, middle score, or simply your credit score. It will help determine the programs available, the interest rate you pay, and even the amount of monthly mortgage insurance you pay on a conventional loan if purchasing a home with less than 20% down. As you probably already know the higher your score the more favorable terms you'll be offered. This is where the savings can amount to thousands of dollars over the life of your loan. Can you improve your credit score? Yes you can in most cases, by utilizing our FREE Credit Upgrade Program for home loans! By adhering to the recommended strategies (rather than waiting 3 months or longer for your "FICO" to improve) we have seen results in as little as 3 business days but each persons situation is different so the time to completion and results may vary. We have had great success so I would encourage anyone with a "FICO" score below 740 to inquire as the savings may be substantial when buying or refinancing a home. Simply give us a call at (303) 650-9400 to learn more! This is a limited time offer and could end at anytime.
If you are not yet ready to buy make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies. You can receive a free copy of your credit report once a year by visiting www.annualcreditreport.com.
Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.
The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.
Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.
Don't "max out" your credit lines. Keeping your balance at 50% or less of the credit limit is good since the size of the balance on your open accounts is a factor, lower balances are better.
It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.