Take Charge - Tips For Managing Your Credit Score

By
Real Estate Agent with Lisa Von Domek Team TX License #0552989

Financing and Your Credit Score

Credit is an important component in helping you find the best loan product to meet your home-buying needs. The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better your credit, the more loan options you will have when choosing what’s best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

 

 

  • DO pay what you owe – regularly and on time.
  • DON'T skip payments.
  • DO have a checking and a savings account.
  • DON'T hold more than four credit cards.
  • DO sign up for automatic payroll deposit with your employer.
  • DO keep your total debt-to-income ratio under 36 percent. 
  • DON'T exceed or continually increase your line of credit.
  • DO keep track of your spending and stay within your budget.
  • DON’T continually open and close accounts; maintain a constant profile.

Your lender will view your credit report when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates and product features.

Not sure where you stand?
It's wise to obtain a copy of your credit report at least once a year in order to find your

FICO score. You can obtain your report for free once a year from each of the three major credit bureaus at www.annualcreditreport.com. It’s especially important to figure your score before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary.  In that report, you'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments and collections. Your home mortgage consultant should be able to help you better understand what your score means.  

You can get your credit report from many sources, but should you find something in your report that may be inaccurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly: 

Equifax: (800) 685-1111 or www.equifax.com 
Experian: (888) 397-3742 or www.experian.com 
TransUnion: (800) 916-8800 or www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you’ve handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home – and paying your mortgage on time each month – is a great way to rebuild your credit.

For this and more information call your Dallas Realtor Lisa Von Domek, and visit www.LisaSellsTexas.com!

 

 

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Rainmaker
559,049
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning 

Thank you for sharing your information with us

Have a great day.

May 17, 2018 04:50 AM #1
Rainmaker
2,600,106
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Lisa. Do pay what you owe and pay it on time! The rest is easy! Enjoy your day!

May 17, 2018 04:59 AM #2
Rainmaker
4,197,490
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great advice Lisa.  Those willing to work to get their credit scores up will reap the benefits.

May 17, 2018 05:38 AM #3
Rainmaker
1,287,143
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Lisa, some really good advice here. I had some clients who kept opening and closing Visa cards to get 0% interest rates. I had to explain to them this was not great for credit score. Good post!

May 17, 2018 07:02 AM #4
Rainmaker
1,365,807
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Lisa, this is great advice, especially when planning on getting a mortgage.

May 17, 2018 07:34 AM #5
Rainmaker
2,732,995
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Tooo many people look at this number as "beyond their control" when they DO and CAN do many things to improve it !

May 18, 2018 04:46 AM #6
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Rainmaker
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