CASE STUDY 4
Your credit report and credit score are both the most important tools to qualify for your mortgage. They secure the best rate and open your negotiation to more financial institutions. Here are some important points to secure a good credit score:
It is important to verify your credit report at least once a month, making sure it is a soft credit check which will not reduce your credit score. Multiple companies offer credit alert services on some local bank platforms and so do companies like Equifax and TransUnion as well. By verifying your credit report, you are looking to see if there are any errors you can update (Equifax) about a possible change of address or new employment. This can actually increase your credit score.
Make sure to use your credit card regularly and pay the amount owed on time and make payments before the due date, if possible. Pay an amount of $15 to $30 over the minimum payment required on the credit card statement. By using your credit card regularly, you show activity and responsibility in making payments on time or even before receiving the statements. Try to always maintain a zero balance on your credit cards. Or at least, always keep balances at 30% or less. If you want to cancel some cards, you can do so but make sure to keep the one you have had the longest. Most banks need two credit cards for a client to qualify for a mortgage, but we have certain strategies that can be used to help our clients.
If you have ever had a file with a collection agency, make sure you pay off the amount that is owed and ask for an acquittal letter as proof that it is paid off. Make sure to do an update with Equifax and send the acquittal letter so they can update your credit report which can then allow your score to go up.
Contact us and we will show you how to get started.