Many people who would like to purchase a new home are finding it difficult to do so due to credit issues. The following information on how to increase your credit score is provided by Credit 360 Consulting. Over the next few weeks I will share with you additional tips and some information about credit bureaus that may surprise you.
- Pay your bills on time! One late payment has the potential to drop your credit score more than 100 points!
- Keep credit card balances low. FICO puts the highest emphasis on the 0-19% category in relation to your limit.
- Do not allow new collections to show up on your report. A new collection can have a tremendous negative effect on your score-even if the balance on it is small. Try to pay any new bills that come your way.
- Utilize secured credit cards if you do not have a credit card yet. Secured cards can be extremely useful tools for rebuilding your credit score.
- Dispute inaccurate and unverifiable information on your credit report. This can be the most daunting part of the process but also the most effective-study the Fair Credit Reporting Act to learn your rights and dispute your own items or hire a reputable company to assist you.
For more helpful information on how to improve your credit, click on Credit 360 Consulting.