So, you’ve decided this year is the year you’re finally going to buy a house. Congrats! But now you’re a little panicked because your credit score isn’t exactly going to make lenders swoon.You’re not alone. The national average credit score is 695, while only half of consumers fall in the desired 700-plus range. Although you certainly can get a mortgage with that score, you’ll need a 740 or higher to get the best rates. And that point is not lost on potential home buyers, 45% of whom wait for their credit scores to improve before applying for a mortgage.
While credit history isn’t built (or, for that matter, destroyed) overnight, there are still some things you can do right now to boost your credit score—fast. Here are some sneaky yet totally legit ways you can improve that all-important three-digit number in record time. Paying down your debt is the thing you can do that could have the biggest—and fastest—impact on your credit. Credit utilization (or the amount you can borrow versus the amount of debt you’re carrying) accounts for 30% of your credit score. And the more available credit you have, the better. “The easiest way to optimize your utilization is to use a credit card and pay your balance down to 1% of your credit limit right before your bank reports to the credit bureaus,” says Liran Amrany, founder and CEO of Debitize, a financial technology company that automates better money and credit habits. “You want to have positive utilization so it’s clear you are using the card, but otherwise want to be as low as possible,” Not sure when your creditor reports? You could call them up and ask, or you can check your credit report. According to Amrany, you want to pay before the date last reported You hopefully already know that you have to pay your bills on time to get a good score. If you’re already late on a payment, pay that puppy ASAP for a quick credit boost. “Because paying bills on time is the most important factor in a credit score, going from paying one or more bills late each month to paying all on time could show an improvement in one to two months,” says Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network. Bonus: If you’re less than 30 days late and you can make the payment today, do it! Creditors don’t typically report until after the 30-day mark. Add an authorized user account and piggyback onto their good credit history. “The full history of the other account shows up on your credit report immediately,” “And when this older, established credit account is added to your credit history, it results in an increase in the average age of accounts you’ve ‘managed’ (which also increases your credit score).” contact us today if you need to add some authorized trade lines to your credit report and boost your fico score today www.qualitytradelines.com or call 323 776 6424
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QUALITY TRADE LINES
WE PROVIDE TRADE LINES & HELP YOU GET FUNDING WITH CREDIT CARDS AND LINES OF CREDIT Archives
June 2019
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