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Buying a New Home? Here’s the Best (and Fastest!) Way to Build Credit

Buying a New Home? Here’s the Best (and Fastest!) Way to Build Credit


Buying a New Home? Here’s the Best (and Fastest!) Way to Build Credit

If you’re considering buying a home, good credit is key. Although buying a home with bad credit is not impossible, the right credit scores will make things easier.

How is credit determined?

Credit scores are determined based on late payments, the amount owed, and how often you miss payments. It also considers how many credit accounts have been delinquent compared to all your accounts.

It’s best to avoid bad credit home loans. Most people don’t realize how easy it is to improve your credit score in record time. Here are a few tips on the best and fastest way to build credit:

Pay your bills on time

Paying your bills on time shows you are responsible. Late payments stay on your credit report for seven years, which can severely affect your credit score. Every month you have a delinquency on your account, it hurts your credit score. The more you pay on time, lenders see you as an asset more than a liability.

Make frequent payments

If you can make a series of payments throughout the month that can keep your balances down, that quickly improves your credit. This helps increase your score immediately because it brings your credit utilization down.

Ask for higher credit limits

Asking for a higher credit limit on your credit card can boost your credit score even if your balance remains the same because your percentage of credit utilized will drop. But make sure they don’t perform a hard credit inquiry, which could hurt you.

Dispute credit report errors

Creditors make mistakes all the time. Disputing these errors can get them removed. Credit bureaus have 30 days to investigate and respond.

Get added to someone’s credit card

If you know someone who has a long, positive history of credit card use, check to see if they have a high credit limit. If so, they may be willing to add you as an authorized user. You won’t have to use the card at all for your credit to improve.

Get a secured credit card

Getting a secured credit card can help build credit over time. Make sure it’s a secured card that reports your credit activity to all three credit bureaus. Although you will have to back the card with your own money initially, the card company does periodic reviews to determine whether you are eligible for an unsecured card.

Do not close your credit cards

Closing your credit cards can hurt your credit. Although it sounds a little crazy, lenders are looking at the credit limit that was lost when they calculate overall credit utilization. Use the card occasionally, so it won’t be closed.

These are some surefire ways to quickly build your credit portfolio and help you get the home of your dreams. Find out what your credit score is by getting free copies of your TransUnion, Equifax, and Experian report at www.AnnualCreditReport.com.

For more tips on building your credit, contact an associate at Mortgage Investors Group today!

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020