Does your credit score need a boost?
Your credit score measures your creditworthiness and is one factor used by lenders to determine whether you'll pay back debts. That being said, you'll want to make sure your credit score is in good standing prior to applying for a loan.
Although it takes time and patience to increase your score if it's sitting below average, here are some tips to give your credit score the boost it needs.
Request a copy of your credit report to ensure you know exactly where you stand. You're entitled to one free copy of from each of the three credit bureaus once per year, without it negatively affecting your score. To monitor your credit score every couple of months pull a report from each bureau one at a time every four months.
Check and double check for any errors. It is inevitable that errors will happen so make sure you catch them right as they occur.
This one may seem obvious but pay bills on time! One of the largest factors involved in calculating your credit score is your payment history
Having a decent amount of credit available to you can be good, but don't open a lot of new accounts at one time. Every time you open a new credit card the retailer will check your credit report to assess how much credit they should lend you. This results in a slight ding to your score and may cause lenders to think you're a bigger credit risk.
Try keeping your old accounts open. Around 15% of your credit score comes from the length of your credit history.
Pay your parking tickets! It might seem silly but if those go left unpaid they can be passed along to a collections agency and result in a negative way on your credit report. Always speak to a credit analyst for more specific credit advice.
American Pacific Mortgage and its loan officers are not credit experts. Always consult a credit specialist for more details.Contact Rebecca Ross