How to improve your credit score
It's no longer impossible to change your score in the time between when you decide to buy a home or refinance your mortgage and when you apply. So the short answer is, you need to be educated about the credit process. If your trimerge score (called a FICO score, this is your middle score of the three credit bureaus reporting a score) is below 580 you may wish to consider using a third party credit repair service. A quality service will show you how to permanently removed certain derogatory items from your credit, and how to manage your credit in the future. If you are interested in credit repair, please fill out the form below and we will contact you to help you select the best options for your situation.
There are also strategies you can live with to make sure when you apply for a loan your score is as high as possible.
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. It's free to request a copy be sent to you online at each bureau's website.
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 many 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.
Dont "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. Try to get your credit card debt below 50% of the credit limit prior to applying for a loan.
It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.
