It is not the end of the world if you are not able to buy a home today due to your credit score. But not learning how to raise your score can have harmful effects. Not only on your ability to buy a home but also the interest rate you pay for other items as well as the cost of insurance. In addition, some employers use credit scores in making hiring decisions.
Several lenders that I work with have programs to help buyers increase their credit scores in a reasonable time. In addition I also work with a non profit that can help you make a budget and give you ideas on improving your credit score.
Some of the ways that may help you to increase your credit score are:
1. Paying off or lowering the balances on your credit cards. Do not close accounts though, just pay them off.
2. Sign up for a secure credit card at a local bank. Make a small purchase each month and pay it off.
3. Sign up for auto pay on your reoccurring bill pay on your accounts that allow this option. Making sure the money is available in your account.
4. Make a budget and stick to it. This seems to be a difficult thing in our society but you need to see where your money is going in order to manage it.
5. Review your credit report. If there are any discrepancies, write to the credit reporting agencies to correct them.
6. If you have judgments or collections, contact the people you owe and see if you can make payment arrangements. Sometimes creditors will take less than is owed if you will negotiate with them. But you have to call and ask. There is no guarantee they will take less but if you don’t ask, you will never know.
Your credit score affects so many parts of your life. People who have low credit scores tend to pay more in interest for all sorts of things. So decide today to improve your credit score. If you need help improving your credit score, feel free to ask for a referral to a person who can help you. Just because your score is low today doesn’t mean it has to stay that way.
If you have real estate questions, please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.net