If you are about to walk down the path of home ownership, then your journey likely starts with a trip to a mortgage broker or your bank. If you have recently received your credit report and aren’t sure it shows you in a shining manner, here are some tips to help improve your situation.
That Doesn’t Look Familiar
Take a look through your report with a fine tooth comb to identify anything that doesn’t look right. It might be an address you don’t recall or any application for credit which you didn’t make. Whatever it is, if you don’t remember it, query and have it cleared up.
If somebody steals your identity and makes applications for credit in your name without repayments, it can greatly affect your credit score and ability to obtain future lines of credit.
Establish a History
If your challenge is not having a credit history for your score to be based on, then it’s an interesting predicament for you. The best option is to obtain a credit card for six months to establish a history of management and payment.
If you do choose this path, be sure to make full repayment at the end of each month. If you need to make a repair to the car or you see a deal on the Groupon Coupons page for Jos A Bank then make sure you can cover it by the end of the interest-free period.
Tie up Loose Ends
Final payments of a gas bill or an unpaid parking ticket from years ago can bring down your credit score and make it harder for you to obtain credit. If you see any of these are lingering on your credit report, fix them up now, before your meeting. You might find that once they’re gone, your credit score improves.
Clean as You Go
As you clear off your debts and obligations, make sure they are removed from your report as you go. The earlier they are removed, the less trouble they will be when it comes time to lodge your application.
Credit scores are not an easy thing to understand, and trying to understand what a lender is looking for can be even harder, but these tips are a great place to start.