Wednesday, September 18, 2013

Improving Your Credit Score Top Ten Tips

10 Things You Can Do To Improve Your Credit Score People often do not understand how badly a bad credit score can hurt them until it is too late. If you are looking to buy a house, your credit score is a huge factor. There is nothing worse than finding the perfect house for your family and then discovering that your low credit score is a roadblock towards being able to get the house. Your credit is also important because it is how banks and finance companies determine mortgage rates. The better your credit score, the more favorable your mortgage terms will be. Finding a house that you like is only half of the battle, getting mortgage terms that are favorable is the other half.
Looking for a house in the St. Louis area? Finding a house is not always easy, you want the neighborhood to be good, and if you have children, you want a good school to be nearby. We want to help you find the perfect place for you and your family and we know St. Louis. We are a family team and our job is to help you find your next house, without the hassle and the stress. Visit us at and let us help you today! If you are worried about your credit score, there are things that you can do to improve your score. A low score can keep you from getting a good interest rate, or worse, a bank can even deny you because of it. You need to be thinking about your credit score before you buy a house, not discovering too late that you need to increase your score. If your credit score could use some improvement, follow the following to help your score improve, giving you a chance of getting better rates. Do not let bad credit derail your quest for a house.
Check Your Credit Report Do you know what is on your credit report? Many people do not. The problem with that is that if there is any incorrect information on your credit report, especially if it is negative, it will affect your credit. Removing incorrect information can help bring your score up, especially if you have incorrect information that is negative on there. You need to look for more than just information that is not yours. Pay close attention to what the balance owed and total line of credit for each creditor is correct. Consumers are allowed a free credit report every year. Visit to get your free copy of your credit report. From this site, you can get your credit report from all three credit agencies: Experian, TransUnion, and Equifax.
Balance Your Credit If you have a few cards that are close to being maxed out and a few with low balances, transfer some of the balance from the cards that are close to being maxed to a few cards with low balances. You do not need to transfer balances to every card, just a few. This is a short-term solution to help boost your credit score. Ideally, you need to pay off the accounts, but if you have high balances, this is a way to help spread the debt out, so it looks more balanced on your report.
Do Not Close Unused Accounts Part of your credit score is your utilization ratio. Your utilization ratio is your total debt divided by your available credit. Having cards that are unused and that have no balance will help your credit. If you do not want to use the accounts, do not carry the card with you to limit temptation, but leave the accounts open.
Keep Older Accounts If you have a lengthy credit history, your score is better. Closing old accounts that you do not use anymore can actually hurt you because it leaves you with newer credit lines only. Make sure to keep your oldest accounts active by using them every now and then and then paying off the balance quickly.
Bring Down Your Balances If you carry high balances on many cards and loans, your score will be lower. The bigger the difference between your credit limit and your actual credit balance, the better your score. It is tempting to pay off of the cards or loans with the highest interest rates first, but if you want to improve your score, pay off cards that have the highest balances first. Credit card debt affects your credit score more than installment loans, such as student loans, auto, and mortgages. Although it is important to pay off all debt, your credit card debt is very important.
Pay On Time Paying bills late, even if just by a few days, can negatively impact your credit score. It is vital that you pay your bills on time, every time. If you have trouble remembering to make payments on time, set up reminders.
Only Use Credit When You Need To Limit your use of credit cards. You are only working against yourself if you continue to use your credit cards while trying to pay them off. Try to keep your balances to 30% or less of the total limit of the card.
Ask For Late Payment Forgiveness If you have a history of making your payments on time but you have a single late payment on your credit, you can request that the creditor remove that late payment from your history. Request this in writing for them to give you more consideration.
Do Not Apply For New Credit If you open multiple new lines of credit, it can be a double-edged sword. The available credit can boost your score but having too many accounts that were all recently opened makes it look like you are desperate to find credit and it can hurt you.
Do Not Consolidate Your Debt Consolidation can hurt you. When you transfer your balances all to a single card, it negatively affects your credit. It is better to keep your debt spread over a few cards while you pay the balances off rather than have it all on one credit line.
Your credit counts. Protect yourself by following these tips for increasing your credit score. Do not let your dream house slip from your fingers because of a less than stellar credit score. The Helderle team is here to help you. We know the neighborhoods, we know the city, and we can help you find the house that you have been dreaming about.
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