How to know and improve credit score

How to know and improve credit score

Are you thinking of buying a home?  How do you know and improve credit score?  If you are, like most Americans do then you should know your credit score first because that will determine how fast your application will be approved.  In addition, this score determines how ready you are to start the home buying process.  Remember that the higher your credit score, the better for you to receive lower interest rate for your mortgage.  In conclusion, higher credit score means more affordable home for you.

 

How do you get your credit report?

Getting your credit report is FREE.  Yes, it is free.  You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.  To get your free report you can order online from annualcreditreport.com.  They are the only authorized website for free credit reports, or call 1-877-322-8228. Also, for this transaction you will need to provide your name, address, social security number, and date of birth to verify your identity.

Free credit report. How to know and improve credit score.

Credit Report is available from each of three major credit reporting agencies – Equifax®, Experian®, and TransUnion®.  Once you received them please review the report.  In case of any error, request a dispute form from the agency within 30 days of receiving your report.

 

How do you improve credit score?

How do you improve your current score?  Well, here are some ways to improve your credit score:

  • Make payments on time.  One of the easiest way to improve and maintain a positive score is to pay on time.  Paying on time includes all your bills and payables – rent, credit cards, car loans, utility bills and others.
  • Limit credit card spending.  Having a high spending on your credit card may mean lower credit score.  The ideal spending is not more than 30% of your limit on credit cards.
  • Pay high balance first.  To free up from credit it is highly recommended to pay down high-0balance credit cards to lower balances.  You can also consider balance transfer.
  • Check for errors.  Reporting agencies are not perfect so you should watch out for possible errors to improve your credit score.  Work immediately to fix them.
  • 30-day period rule.  If you are to shop for mortgage rates keep in mind to do it within a 30-day period because inquiring for a longer period of time can lower your score.
  • Work with the experts.  To make the process easier it is better to work with industry experts like a credit counselor or a lender to improve credit score.

 

We at HMAC can help you

There is a wrong notion that once you received a credit score of lower than 750 FICO® Score they can no longer get a mortgage.  The truth however is that more than 53% of loans that were approved has a score under 750.

Home Mortgage Alliance Corporation (HMAC) has highly qualified Loan Officers which can assist you in improving your credit score.  They can also help you get the best deal in mortgage.  Don’t hesitate to CONTACT US or call us at 800-900-7040 and we will be happy to assist you.

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