In the market for a new home in 2022? With only weeks left until this year comes to an end, now is not too late to get your finances on track. Let's explore some tips that can help improve your credit score before next January rolls around!
Get A Credit Report
The first step is to order a fresh copy of your credit report from one of the major agencies. The Fair Credit Reporting Act allows you free access once every 12 months so if it has been awhile, now's the time! You can get started with this website recommended by Federal Trade Commission - AnnualCreditReport.com
The government-recommended website to request your free credit report is not a search engine, but rather an official site. Make sure you only use this link and do not fall victim for any imitations that may be out there looking to steal personal information
Take Care of Outstanding Debts
Now that you have a copy of your credit report, it's time to go through it, line-by-line. You should recognize every current and outstanding account in the report. Any balances owing should be in order and reflect how much you owe. It's critical that you flag any mistakes or old debts that you have already paid in full. If you come across anything that shouldn't be on your credit report, call the reporting agency to let them know. If necessary, they will assist you with challenging the issue.
Pay Down High-Interest Debts
The final tip in today's guide is to prioritize your outstanding debts so that you can pay them off more efficiently. The essential debt payments are your mandatory minimums, which you need to pay to avoid being sent to a collection agency. From there, try to pay off your debts with the highest interest rates first. Getting these paid off faster means that over time, you're spending less on interest payments. Moreover, you can use that extra cash to pay your debts down further.
The above are just a few of the action steps that you can take today to start improving your credit score. When you're ready to discuss a mortgage for your new home, give me a call. I will be happy to advise you on the mortgage offer that suits your needs, budget and credit.
Photo by Pickawood on Unsplash