Share:

Your credit score has a major impact on your ability to secure the residential real estate of your dreams. Mortgage lenders look at these scores to assess risk, and lower scores indicate that an applicant may be too risky to approve. In general, you want to have a good score of at least 670, but scores between 740 and 800 are considered very good to exceptional. Here are a few ways to enhance the score before applying for a mortgage. 

3 Ways to Quickly Boost Your Credit Score 

1. Look for Discrepancies in the Credit Report

Check your credit report regularly to ensure the information is accurate. Mistakes can happen, and errors can make the score appear lower than it actually is. Once you’ve discovered a mistake, address it with the credit bureau responsible for creating the report. You may need to fill out a form explaining the issue, and it also helps to provide additional information regarding the error. This can include a credit card or loan statement showing accurate information. 

2. Pay Down Revolving Debt

real estate

Credit cards are a prime example of revolving debt. While credit cards have a set limit, you can continually borrow money until the limit is reached. This has an impact on your credit utilization ratio, which is another important factor in determining your credit score. 

Keep this ratio under 30%, meaning that your current balance is less than 30% of the total limit. If you’re above 30% credit utilization, focus on paying down revolving debt to improve the score. 

3. Set Up Auto-Pay to Avoid Late Payments

Late payments can also have a major impact on credit score. Auto-pay deducts money from the bank account whenever a payment is due, so you never have to worry about being late. Not only does this provide peace of mind, but it also greatly improves the chances of being approved for a residential real estate loan. 

 

If you’re a first-time homebuyer, it's best to work with a knowledgeable and supportive real estate agent. Josh Jarboe RE/MAX Alliance in Louisville, KY, gives clients the kind of personalized service they need. He takes the time to get to know clients and their needs to help them find the perfect residential real estate. He’s also available to answer questions and ensure a stress-free process. Visit him online or call (502) 216-7590 to learn more about his services. 

tracking