Let’s chat a bit about credit. With a background in Real Estate, I’m constantly coming across clients who need to increase their credit score quick. This is either to qualify for a house or to get a better interest rate. This is also a good idea when it comes to applying for a job or if you are worried about Insurance rates. So the bottom line is credit is important.
Having good credit can save you money in the long run because people with good credit get better interest rates. So when you buy a house, car, or even on your credit cards, you will pay less interest than others. Also when you have good credit, many times you qualify for 0% interest on purchases and balance transfers, which is a good tool to use when you are trying to get out of debt.
So here are 3 ways that you can improve your credit score quickly.
- Pay off your credit cards– I know, I know. Easier said than done, but little by little pay off those debts and when you are done with each card put it in the freezer. Yes, I know that sounds crazy, but it’s better on your score than closing your account. This way they are out of the way and you are not tempted to use them. And if you are looking to apply for a mortgage you need at least 2 open trade lines in good standing.
- Check your credit report for inaccuracies– Sometimes you find things on there that are not yours or maybe have been paid off already. Very easily you can dispute these online with the credit bureaus.
- Don’t make a large purchase before you are going to buy a house – I see this all the time, someone thinks that they are not going to be able to buy a car for the next few years after they purchase a house, so they go out 2 days before they are going to close on a house and they buy a car. That’s just not smart. Other times I see a refrigerator, washer and dryer, and big screen TV purchase right before as well. Now I know this won’t increase your credit score, but it is something that will decrease it really quickly, so if you need your credit score to be good don’t do this!
Now these are 3 great ways to keep your credit score up. We’ve put together a great pdf with 9 ways to boost your credit score fast, especially if you are trying to apply for a mortgage. Click below to grab your copy.