In the real estate industry, your credit score is everything. Without a good score, you will not be able to obtain a home loan or even a credit card. This is because your credit score is what lenders look at to determine if you are someone they can trust. So you can see why it is so important to have a good credit score.
But what do you do if your credit score is less than desirable?
Tips for Improving your Credit Score
1. Fix Inaccuracies: First of all, get copies of your credit reports from the three major credit bureaus. Then check each report for inaccuracies and report these inaccuracies to the credit bureau.
2. Pay Bills on Time: One of the most important things you can do is to pay your bills on time each and every month. To help you accomplish this, consider setting up automatic payments or reminders.
3. Know the Legal Steps to Fix your Credit: The Federal Trade Commission’s “Building a Better Credit Report” has information on correcting errors in your report.
4. Avoid Credit Scams: If it looks too good to be true, it probably is.
Understand how your Score is calculated
Answering the below questions will help you understand your credit score:
1. Have you consistently paid your bills on time? As we already mentioned, paying your bills on time is one of the most important things you can do for your credit score.
2. Do you have any outstanding debt? If the amount you owe is close to your credit limit, lenders will see this as a negative.
3. How long is your credit history? The longer your credit history, the better. Of course, this is only true if it is a good history.
4. When was the last time you applied for a credit card? Applying for too many new credit accounts can negatively affect your score.
5. How many credit accounts do you have? A mix of installment loans and credit cards may improve your score.
Hopefully you have found these Financial Management Tips useful. If you have any questions, please contact Potomac Valley Management by calling 1.877.390.4090 or visit PVMGT.com today!
Potomac Valley Management, LLC has been providing quality property management services to the DC Metropolitan area since 2004. We specialize in multi-family property management for apartments, cooperatives and homeowner’s associations.
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Sources: Improve your Credit Score