Advice on Boosting your Credit Scores

tips on improving your credit scores

Tips on Boosting your Credit Scores to Qualify for Mortgage

There are several simple tips that everyone should be aware of in maintaining the best possible credit score.  If you have zero balance credit cards, always have a balance of at least $10 dollars.  Having a minor balance like $10 dollars will increase your score.  Try not to max out your credit cards.  Have a loaded credit card will definitely drop your credit scores.  It is always good to have available credit on your credit cards.  Try to keep your balances below the 50% level.  If you can have lower credit balances, the better off your score will be.  However, zero balances will hurt your credit scores.  Try to have a minimum of $10 credit balance every month.  Following these tips will help you qualify for an Illinois mortgage.

Add Secured Credit Cards to Boost your Credit Scores

Always try to have 3 credit cards with available credit balances.  If you only have one credit card, try to get two more credit cards.  If you have bad credit and are unsure that you can get an unsecured card, then get two secured credit cards with at least a $500 credit limit.  When you get your new credit cards, always keep your credit balances low but yet avoid having a zero balance.  Keep a $10 dollar credit balance on your credit card every month.

Strategies in Re-establishing your credit to improve your Credit Scores

Do not apply for credit all at once.  As an example, if you apply for ten credit cards all at once, your credit score will definitely drop and you have damaged your credit due to the massive inquiries all at once.  Whenever you apply for a credit card, the credit card company runs a hard pull credit report which is not good for your credit score.  It is okay to apply for a credit card from time to time but not too often because a hard pull credit report will lower your scores and lenders tend to view it as if you were desperate for credit.  Lenders do not view credit inquiries favorably.

Pay your bills on time

Always pay your bills on time.  One 30 day late payment on your Illinois mortgage or automobile loan can drop your credit scores by at least 50 points or more.  If you are late on one mortgage or automobile loan payment, you might have to wait one year of continued timely payments for you to qualify for a mortgage home loan.  Most Illinois mortgage lenders want to see at least 12 consecutive months of timely payment history on all of your monthly debt obligations in order to approve a borrower a Illinois mortgage loan.

Monitor your credit by getting your annual free credit report

Remember that you are allowed one free credit report from each of the three major credit bureaus once a year.  I would take advantage of the free credit report and monitor it like you are monitoring your checking and savings account.  Remember that low credit scores cost you money.  Lower credit scores means higher interest rates on mortgages and auto loans, higher interest rates on credit cards, and higher insurance premiums on auto and health insurance.  Also keep in mind that credit reporting agencies have a track record of making mistakes in reporting credit and you can have errors in your credit report that could be affecting your credit scores.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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