01 Feb Easy Steps to Improve Your Credit Score
Before embarking on the homebuying process, it’s important to make sure you’re equipped for success. Your credit score is one of the main factors that any lender takes into consideration when providing a rate for a mortgage loan. At Fairway Independent Mortgage Corporation Montana, we’re here to offer some tips to improve your credit rating. Instead of delaying your move forward on a home purchase or refinance by focusing on the offerings that are based on your current score, you’re actually in a good position to take a few simple actions to improve your credit. Following these suggestions will ensure you receive the best rate available for your situation at any time.
Adjust Errors on Your Credit Report
The first step in improving your credit is making sure to thoroughly review your credit report. Free places to view your credit include the popular Credit Karma and the government-sponsored Annual Credit Report. By checking your credit on your own, you can determine if there are inaccurate late payment claims, unauthorized credit pulls or balance inaccuracies. Once you spot an inconsistency, you’ll need to reach out to each of the three credit bureaus by providing information to support your claim.
If a late payment is recorded, but it’s either your first time or your only “offense,” you can ask to have it removed from your record if you have otherwise positive history. Occasionally, even with negative history, you can contact the creditor to set up a payment plan and in return have the mark removed from your report. Learning what lenders will see when pulling your credit report is the first action you should take to begin improvements.
Become An Authorized User
One of the most common credit issues, particularly for first-time homebuyers, is lack of credit history. An easy and quick way to fix this on your credit report is to become an authorized user on a seasoned credit account where the primary user has exceptional credit. When someone adds you as an authorized user, your credit report is adjusted to reflect this account’s full history, including any positive or negative aspects of the account that came about before you were attached. If you make sure to ask this of someone you trust, it could boost your score much quicker than opening a new account and taking positive steps such as on-time payments and getting a heightened credit limit.
As an authorized user, you are not responsible for the payments and do not technically have to make charges toward the account. In fact, the original credit holder does not need to give you access to the account in order to attach your name. But, depending on the scoring system used by the creditor, it could positively affect multiple aspects of your credit.
For more on these tips or other advice on improving credit, contact one of our knowledgeable loan officers today! We’re here to make sure you’re in the best mortgage situation as quickly as possible.