Bay Area Home Buyers Blogs
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1.) Always know where you stand in credit. What does your credit say about you?
How will you begin to fix your credit scores if you don’t know what they are? Right! One of the more obvious tips to improve your credit score in order to buy a home is to be fully aware of what your credit scores are in the first place. It’s surprising the number of consumers who have no idea what their credit scores are. There are several different sites that offer a free trail or even free credit check service. Some make it extremely easy to monitor your credit buy plugging in a few numbers. Below I have included a list for the best free credit report sites in 2017.
*Just note that all of these are not free forever, however, you do get what you pay for if you keep the service beyond the trial period. Click here: http://www.thesimpledollar.com/best-free-credit-report-site to find more details regarding the different sites. Choose one and start making credit a priority. Be aware of what your credit scores are.
2.) Suck it up and pay your debt! It’s yours! Get Current on Any Delinquent Accounts, start chipping away at the smaller ones first.
Are you tight with your money and still coming up broke, short, or even still have bad credit? I know many people think its debt, I will pay it later. But the trust of the matter is the debt only gets longer and longer and before you know it, you are drowning in money that you owe to people/company/companies and you don’t have it. Let’s rise above and clear our face. Just because someone misses a payment on a bill doesn’t mean that they should forget about it. Just because you don’t have to pay it now doesn’t mean you can shove it under the run. Debt collectors always come to hunt for what’s theirs. The same way you would if the shoe was on the other foot. This is another tip for improving credit scores so you can start house hunting. Get current on any delinquent accounts it will suck for a little but you will love the results. Also, Catching up on late payments can increase a credit score relatively quickly once a credit report reflects the payment. Accounts with missing payments can destroy a home buyer’s credit score so it’s important to stay current on all accounts! Just a little extra tip: study shows that being tight with money can cause you too actually to spend more and save less. So take credit personal it’s the new best reputation to have!
3.) Clear anything you see on your credit! (Dispute Any Errors on Your Credit Report)
Yes, that’s correct. We are all human and sometimes it’s a simple mistake and others its fraud either way we must fix the errors. Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Credit reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. Some financial advisors and consumer advocates suggest that you review your credit report periodically. It’s very possible there can be errors on credit reports. It’s extremely important that if there are any errors on your credit report, you dispute them. Disputing Errors on Credit Reports can be done pretty easily nowadays, thanks to the internet and technology. Most creditors allow consumers to dispute errors online and the review process is much quicker nowadays when comparing to 10 years ago.
4.) Eliminate Disputed Accounts from Your Credit Report (If you have disputed things and they are still listing on your report. – Eliminate Everyone!)
While you most defiantly want to dispute your credit debt it is also just as effective to remove the things you have disputed. While the internet has made most people’s lives easier, it also has increased the number of people who’re having their identities stolen. It’s not uncommon for a credit report to have accounts on them that’re actually not supposed to be on them. If there are incorrect accounts on your credit report, it’s extremely important they’re removed. Removing disputed accounts from a credit report can improve a credit score fairly quickly.
The best way to get a disputed account removed from a credit report is to contact the creditor directly. It’s likely the creditor is going to request some type of proof, which in the case of identity theft, is some type of relating documentation, which you should be proud to hand over, reward yourself.
5.) Pay Off or Lower Balances on Accounts with Small Balances/ Pay off or Lower Balances on Accounts with High Interest Rates
It’s pretty common for mortgage lenders to require home buyers who have average credit scores to pay off accounts with small balances. The reason mortgage lenders require home buyers to pay off accounts with small balances is because it changes their income to debt ratios. A homebuyer’s income to debt ratio is a factor that can have a large impact on mortgage pre-approvals.
If you’re unable to completely pay off accounts with small balances, lowering the balances can also go a long way with improving your credit score. It’s recommended that before paying off or lowering balances with small balances, you discuss with a mortgage lender to make sure you’re selecting the best accounts! But sometimes we have to give ourselves a reality check. For example: if you have a debt of 100 dollars and your best friend ask you to go on an amazing trip that’s will affect your ability to pay off the 100 dollar debt. Most people will choose the trip. The extraordinary person will pay the debt and take 5 trips at a later debt. If you find yourself in these types of situations often, chances are you are now spending your hard earned money correctly and you probably could have paid off majority of your debt by now. Be wise and make the right decisions with your money.
It’s possible that paying off or lowering balances on accounts with small balances is not the best option but rather you targeting accounts with high interest rates! Paying off or lowering balances on accounts with high interest rates can be a great way to improve your credit scores. Depending on the type of account, it’s feasible that you’re paying crazy amounts of interest on monthly bills. For example, some credit cards have interest rates of 20% or higher! Paying off or lowering the balances on these high interest accounts can potentially mean extra money each month to use towards a down payment on a home. A great tip for saving for a down payment for a house is reducing monthly debts and not throwing away money each month to pay interest on bills is a great way to accomplish this!
6.) Pay Bills on Time!
Paying bills on time may seem like a silly tip for improving a credit score because it’s so obvious, but it needs to be discussed. Another important tip for improving your credit scores is to pay all bills on time. Paying bills on time gets you in the rotation of paying bills timely and it’s a great practice for a lifetime change. Once you get started they say a ball in motion stays in motion. They were right. Make this fun! Enjoy paying bills.
Since payment history is the category that is weighed the heaviest, simply making on time payments will go a long way to improve your credit score. Every time you pay a bill it is tracked. If making a payment on time is not feasible, it’s important that it’s not ignored! You may need to rearrange you payment schedule to make this a priority. Make it happen, don’t make excused if you want the house you’ve always dreamed of. Consumers who cannot make a payment for whatever reason just decide to not make a payment, which is a mistake. It’s suggested that if you’re unable to make an on time payment that you contact the company or organization to give them the heads up. Most companies will often work with consumers to setup a payment plan that is acceptable to both parties. You have to be in a relationship with your credit. So show the same love and affection to your credit. You do know that it follows you everywhere.
7.) Try Not To Close Old Accounts (If you can help it, don’t close active accounts).
Seeing as credit history is one of the determining factors of credit scores, closing old accounts can actually do more harm than good. Now keep in mind you have to do what best for you at the time. If you can keep them open, that’s recommended. If you have old credit cards that haven’t been used in years, DO NOT close these accounts. By closing old accounts, you could be potentially hurting your credit history length.
For example, if you have an average credit history of 5 years and decide to close a credit account that’s 10 years old, you’re credit history is likely going to be less than 5 years after closing the 10 year old account. It’s important to realize that if you have old accounts, especially credit card accounts, that you use these accounts periodically to avoid them being closed by the company automatically.
8.) Don’t get yourself into a deeper hole (Stop Opening New Accounts Right Away)
Just think about it. If you are having the hardest time keeping up with current bills and/or debt why would you continue to pill on the damage? It just doesn’t make any sense. However, many consumers believe that opening new accounts will improve their credit scores. Opening new accounts can actually do the complete opposite and can destroy a credit score, so to improve your credit score, don’t keep opening new accounts!
One of the reasons opening new accounts can hurt a credit score is because when a new account is opened, generally, a credit inquiry is pulled. Too many credit inquiries can negatively impact a credit score.
9.) Open Secure Credit Lines, Only If Necessary (While fixing your credit is priority, building good credit in between time is also helpful and a great habit to start!)
There are some circumstances when a potential home buyer doesn’t have enough credit lines showing on their credit reports. In this case, it may be necessary to open a new credit account.
Mortgage lenders who’re working with potential borrowers who need to improve their credit scores by opening new credit lines will typically suggest secure lines of credit. A secured credit line is one which a borrower uses an asset as collateral to secure the account.
Mortgage lenders will often suggest secured credit cards to borrowers who don’t have enough established credit lines. Once a buyer obtains a secured credit card, lenders will suggest making small purchases each month and paying off the balance each month. By doing so, a borrower can improve their credit score by making on time payments and also is establishing a credit line in the process.
10.) In what may seem Obvious, Contacting a Professional to Help with Improve Your Credit Score can be fun and it puts you to the test. (OK, Let’s face it, we all say we want to fix our credit but when do you actually take the 1st step?)
First, paying a professional for services, we are more likely to follow through with them. No one wants to lose money! Most times, we give ourselves too many excuses. Second, once we tell someone else our goals, which make it real and more likely to be accomplished.
I get it, talking about your credit score is not an easy task. People judge you, they seem to think they know what will fix your credit, and it’s just an uncomfortable talk among friends. The truth of the matter is, if fixing your credit is easy, everyone would have great credit. The above 9 tips for improving credit scores in order to buy a home maybe exactly what you needed to learn about, but this may not be the case for everyone.
If you’re struggling to improve your credit scores, it may be wise to contact a professional to help improve your scores. There are businesses and organizations that are designed exclusively to help consumers to improve their credit scores.
As a Bay Area Investor, anytime a potential buyer requests assistance with their credit, I always provide them with information for a local organization that can help. The Perry & Associates Company is an organization that’s designed to help consumers with their credit with great success stories. So head over and start repairing your credit TODAY! An old quote reads: “The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy it today.” – Koki Adasi. Don’t miss out!
Perry & Associates, LLC
Ask for the owner: Latoya Perry (CEO)
Before getting started in the process of buying a home, understanding the importance of your credit scores and how it can make or break your home buying deals. There are very few consumers who have a perfect 850 credit score, so being aware of these credit score improving tips above can go a long way. If you’re looking to buy a home in the near future and (or) trying to improve your credit scores, following these tips will definitely help! Besides Hunting for your 1st house is Exciting stuff. Don’t miss out because of credit. Clean your face and find your place.
“You can have anything you want in life as long as your prepare for it.” – Kei Harvey
Kei Harvey (Real Estate Investor, Entrepreneur, and the Founder of Bay Area Home Buyers, LLC)
Kei has a background in not only sales but public communication and human relations. Growing up in the sunshine state, I was actively involved in athletics. I started playing Basketball at age 7 following track & field, Cheerleading, and little league equipment football at age 12 for the Largo Jr. Packers. I was a pretty athletic kid but had more passion for basketball. I played Varsity basketball during my 4 years at Seminole High School earning a starting position my freshman year. After high school, I went on to play collegiate Basketball at Bevill State Community College for two years & Southern Polytechnic State for two years breaking many records as the start point guard. I was blessed to accomplish numerous awards & accolades along the way, both athletically & academically. My last year of college I began to find my place in life and winning was the only option. Along came real estate.
After 5 years of working as a full-time sales agent, I decided in June of 2016 that I was ready to invest my money in real estate full-time to better serve my clients and pursue my career as an entrepreneur launching Bay Area Home Buyers, LLC. I'm proficient in utilizing the latest technologies so I can ensure the utmost use of time, quickest responses, & the most stress-free methods of communication for my clients. I utilize a unique mix of social media, SEO, website development, & traditional marketing to better serve the buyers & sellers I work with. My goal has always been to conduct my Real Estate business honestly and ethically. To promote the highest level of integrity and enhance the public image of Real Estate Investors.