If you are looking to buy a new home, having a good credit score will open more options including lower interest rates. This article from Realty Time identifies some tips on how you can help increase your credit score. Enjoy the article and give me a call with any questions you may have or for any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: Realty Times | Repost Houterloot 1/4/2023 -
Is buying a home on your to-do list for this year? If so, it may be time to start addressing your credit score. While it’s possible to qualify for a mortgage with scores as low as the 500s, higher scores will yield you more options and better rates, which means greater affordability and more buying power.
While there is no magic bean that will raise your score by hundreds of points overnight, there are some tricks that could help you move into the qualification zone or improve your rate, and make sure you don’t take another hit by making a silly mistake.
Pay off collection accounts
Some older collection accounts aren’t worth paying off if you’re strictly looking to boost your score. You may be able to pay newer accounts and see a bump in your score—if you can ensure that the creditor will report the payment to the credit agencies. Financial experts also typically agree that you’re better off paying the original creditor, not the collection agency. Your lender should be able to help you figure out your best plan of action when it comes to who to pay, and how.
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