Santa Maria Credit: Understanding Credit Scoring and Credit Repair (part 2)
Today's blog is the second part of a two part series and will focus briefly on repairing credit, and increasing your score. The following are some ways you can increase your credit score.
•1. Spread out your credit card debt. This will change the ratio of debt to available credit. For example, if you have a 660 credit score and you have debt on one card with other cards having zero balances, then spread out that debt over the rest of the cards evenly. Doing this will be boost your credit score.
•2. Those accounts that you have should remain active and open. Do not close them. The more available credit you have the better. Closing those accounts with zero balances could actually hurt your credit score.
•3. Keep your credit inquiries to a minimum. Every time you run a credit report or inquire into your credit history, you can diminish your score anywhere from 2 to 50 points. When you are applying for a home loan or an auto loan, several lenders may request your credit report. To offset this, the score counts multiple auto or home loan inquiries as one inquiry in any 14 day period. Please keep this in mind and plan accordingly.
Remember, it takes a while for credit scores to change. If you want to improve your score it will take some effort and time. Allow several months before you submit any applications.
If you are looking to repair and improve your credit score, you can do it yourself or seek the assistance of a professional credit repair service. If you decide to do it yourself, please go online, do your homework and get as much information as you can, regarding laws and your rights. The Federal Trade Commission website is the best place to start.
If you are going to seek out a credit repair service, please be sure they are reputable. Be careful of credit repair scams.
Trying to repair your credit can be tedious and quite involved, but following the above stated steps will help your situation. Remember be patient, but deligent.
If you have any questions about credit or buying a home in Santa Maria, CA or on the Central Coast or other Real Estate related questions please contact me by visiting my website: http://geneperez.net
In buying or selling property in Santa Maria CA, or on the Central Coast, my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better information, please let me know. Gene Perez DRE 01321588
Great series of information on repairing your credit, Gene.