Facebook
X
Pinterest
Copy Link
A good credit score is crucial when preparing to buy a home, and many of us are aware of some common tips for improving credit such as paying bills on time and reducing debt. However, there are several lesser-known strategies that can also help improve your credit score.
Consider a credit builder loan, for instance. It’s a small loan that you pay off over time, designed to help you build or improve your credit score. This can establish a good payment history and increase your credit score.
Another strategy is negotiating with creditors if you’re struggling to make payments. You may be able to work out a payment plan or settle for less than what you owe, which can prevent late payments or collections from hurting your credit score.
Becoming an authorized user on someone else’s credit card is also a little-known tactic that can help boost your credit score by adding positive credit history to your report. But make sure to set clear expectations and make payments on time, as any negative activity will also impact the primary account holder’s credit score.
Using rent payments to improve your credit is another lesser-known tip. Some landlords now report rental payments to credit bureaus, so paying your rent on time can help boost your credit score. Sign up for a rent reporting service that will report your payments to the credit bureaus on your behalf.
Lastly, it’s important to monitor your credit report for any unauthorized inquiries or errors. Each time you apply for credit, it results in a hard inquiry on your credit report, which can temporarily lower your score. Keeping an eye on your report can help you maintain a good credit score.
As a local real estate expert with Century 21, I can help guide you through the entire home buying process, including improving your credit score. Contact me today to learn more about how I can help you achieve your dream of homeownership.
