Santa Cruz Properties Offers: 3 Simple Tips to Improve Your Credit Score
Understandably, one of the main reasons why banks decline loan applications is due to bad credit scores. The lower your credit score, the lower your chances are of being able to obtain a loan and mortgage for a new home or property.
Unfortunately, this obstacle makes it hard for many people to fulfill their dreams of being homeowners.
Let Santa Cruz Properties reawaken those dreams once again and help you turn them into reality.
For over twenty years, Santa Cruz Properties has been helping families become homeowners in South Texas. With our owner financed properties, we can make property ownership come true, and we’d like to follow that up with some of our favorite tips on how to improve your credit score.
Keep an eye on your credit score.
You’ve probably heard that every time you check your credit score, it negatively affects it, but that’s not entirely true.
When lenders and creditors check your credit score when you apply for credit, this is known as a “hard inquiry”, and can indeed affect your credit score negatively.
But when you check your own credit report, it is referred to as a “soft inquiry”, and it causes absolutely no changes to your credit score.
In fact, the smart thing to do is to check your credit score regularly to make sure that there aren’t any inaccuracies. If you ever spot something incorrect or questionable affecting your credit score, it is important to report it to the credit reporting company and the information provider.
Checking your credit score and disputing errors when you see them also helps you to guard against identity theft.
Luckily, there are an abundance of credit score sites and applications available online for free, making it easy to access our credits scores and detect suspicious activity.
Also, keep in mind that if you’re applying for loans and you’re worried it will affect your credit score, multiple loan inquiries within short periods of time are commonly treated as one inquiry in order to not affect your score as much.
Apply for a secured credit card.
The purpose of secured credit cards is to establish credit, and when managed properly and responsibly, can help to repair poor credit. A secured credit card requires a cash deposit that is the equivalent of the credit line and which is also used as collateral in case you fail to make payments.
It works like any other credit card and therefore should be treated like any other – meaning you should only make a few purchases with it and make your monthly payments always on time.
Once you close a secured credit card line, you’ll get your deposit back, and also better your credit score. After giving your credit score a boost with a secured credit card, you’ll likely qualify for a regular credit card.
Maintain good payment history.
We can’t stress enough how important it is to make your payments on time. If you’re good about making your monthly payments on time, you should see your credit score go up at a slow but steady rate.
We recommend that you work on an outstanding payment history, as it makes up a whopping 35% of your credit score – which is a pretty big chunk.
Over the years it has become easier to avoid missing payments, with creditors providing us the opportunity to make payments online, over the phone, or even through recurring automatic payments.
The tools to improve your credit score are out there, and Santa Cruz Properties wants you to take advantage of these simple tips. It’s never too late to begin repairing your credit score.
Contact us today at (956)383-0868 if you’ve had issues securing a mortgage loan for property or a home. Our real estate professionals will work tirelessly and passionately with all of your needs in mind to put you one step closer to owning the property you want without the worries of bad or non-existent credit. Property ownership is just a phone call away.