Prescription for Credit Health

Many home buyers come to me ready to start house hunting. They’re excited; I’m excited. The problem is, they haven’t done the necessary work on their credit. And for better or worse, having credit, GOOD credit, can make all the difference in getting the best loan for your new home.

Here are 5 tips to get you credit-ready:

1. Check your report- easy enough! All three agencies, Equifax, Experian, and TransUnion offer a free report every 12 months. https://www.annualcreditreport.com/index.action
2. Dispute mistakes- take the time to dispute mistakes and correct them. It’s free and there’s a sample letter for disputes on the FTC website.
3. Payment reminders- paying bills on time makes a difference. If you’re as busy and forgetful as everyone else, set up reminders through your bank bill pay system or on your phone. Yes, there’s an app for that!
4. Reduce debt- it’s a no-brainer but paying down what you owe is a necessity, it’s just not always easy. Keep your credit cards open, but decrease their use to emergencies only. Research credible agencies for consolidation help if needed.
5. Credit know how- read up on credit best practices. You can learn to keep credit open with a low balance, and have a variety of credit if possible.

A great source for credit related questions and topics is the Federal Trade Commission, visit their website: https://www.consumer.ftc.gov/articles/0058-credit-repair-how-help-yourself
As they say, there is no quick-fix. Credit repair takes time, effort, and a plan. Call us and we can help direct you to local lenders who can get you started on the right track for home buying.

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