Your Credit Score
How can you make your credit score clean again? Yes, your lenders will be reviewing your credit score. It will play an important role in determining the price range in which you can afford to buy. If you know it will be at least six to eight months before you move into that dream home there is time to expedite the credit cleaning process in order to increase your credit score. Equifax, TransUnion and Experian are important places to get your credit score. Analyze your report and scores, and then start making corrections to your credit mistakes right away. If you find a problem on your credit report, contact the creditors ASAP to make sure the information is correct and accurate. If not, then file a dispute and have them update your report. Make sure this information is corrected with all the credit bureaus. This will allow Equifax, TransUnion or Experian to make corrections as soon as possible in order to help fix/increase your credit score.
Many people have a bad habit of using credit card(s) much like cash. Continually charging and not paying off the balance every 30 days will increase your chances of credit card debt and credit problems in the future. Plan to take action to stop credit card spending. Plan a budget and start fast in order to give your credit score a boost in the right direction. If you pay the balance within 30 days, then you reduce your interest debt to almost nothing. Learn how to use credit cards responsibly to maximize their benefits. Eliminate credit card debit and usage in order to get a handle on finances. This will allow making a mortgage payment possible and not overwhelming.
If your monthly payments make up a large percent of loan and credit card payments, you may be placing yourself in a situation where obtaining a financial mortgage loan is difficult. Anticipating the future is always difficult but taking steps to be financially prudent can make all the difference. When you feel you have extra money, instead of spending it right away, add the money to your savings account. The ability to save will provide you additional financial stability and security.