{"id":1720,"date":"2018-05-20T09:47:04","date_gmt":"2018-05-20T09:47:04","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1720"},"modified":"2023-08-03T19:47:38","modified_gmt":"2023-08-03T23:47:38","slug":"HowToImproveYourCreditScore","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/HowToImproveYourCreditScore.aspx","title":{"rendered":"5 Tips on How to Improve Your Credit Score"},"content":{"rendered":"

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How to Improve Your Credit Score<\/strong><\/h1>\n

\"how<\/p>\n

Many potential home buyers are struggling with having low credit scores and are trying to find a way to improve the scores prior to applying for a mortgage.\u00a0 This process is not complicated and if you learn what negatively impacts your credit scores and which actions on your part can help, you will be able to improve your credit score quickly.<\/p>\n

What Negatively Impacts Your Credit The Most?<\/strong><\/h3>\n

Bankruptcies and Foreclosures \"How <\/strong><\/span><\/p>\n

Bankruptcies and foreclosures are the worst\u00a0thing for your credit. They will be with you for a long time. A chapter 13 bankruptcy says on your report for 7 years and a chapter 7 bankruptcy stays with you for 10 years. Foreclosures stay on your credit report for 7 years also but their negative impact on your credit score diminishes the closer you get to the 7th year.<\/p>\n

Late Mortgage Payments<\/strong>\u00a0<\/span><\/p>\n

Late mortgage payments are going to be a huge problem for you if you are applying for another mortgage. This is the one payment that matters the most. Whatever you do, pay your mortgage on time even if it is a partial payment.<\/p>\n

High Credit Card Balances<\/strong><\/span><\/p>\n

High credit card balances (revolving credit) also negatively impact your scores. It looks like you are over leveraged. Below we will describe how you should deal with this and our technique in this area will really help to improve your credit scores.<\/p>\n

Late Auto Loan Payments<\/strong>\u00a0<\/span><\/p>\n

Late car payments are also a big negative on your credit report. However, you are better off being late on a car payment versus your mortgage. Read [Getting a mortgage with a car loan<\/span><\/a>]<\/strong><\/p>\n

Many Recent Credit Inquiries<\/strong>\u00a0<\/span><\/p>\n

Recent credit inquiries and activities will also have a negative impact on your scores. When mortgage lenders and auto companies are running your credit too often, it will trigger the credit agencies to make adjustments to your scores. If you open many credit cards, in a short period of time that is also viewed as a negative.[\/vc_column_text][vc_empty_space height=”10px”][vc_column_text]<\/p>\n

Get a Copy of Your Credit Report<\/strong><\/h3>\n

Before doing anything, you will need to secure a copy of your credit report to see what is on it. You will be looking for things to improve but also for errors. You should get your free credit report from one of the three credit agencies. If you already spoke to a lender who ran your credit report, they must provide you with a copy. You can also get a copy of your free credit report here<\/a>.<\/p>\n

Reduce Your Total Debt<\/strong><\/span><\/p>\n

Reducing our total debt is important but we also recognize that it is likely a long term strategy and not something that can be done quickly. This is especially true with credit card debt when you can find yourself with increasing balances due to the high interest rates. For now, plan on not incurring any new debt.<\/p>\n

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5 Tips On How to Improve our Credit Score<\/strong><\/h3>\n

1.Reading and Understanding Your Credit Report<\/strong><\/p>\n

Reviewing your credit report is the first thing you need to do. There are a lot of things on your credit report but the most important things to find are as follows:<\/p>\n