"Increasing your limits on your credit accounts will improve your credit score in literally minutes!"
These days, any type of large investment (and even some small investments), credit card deal, and even department store credit accounts, are largely impacted by your personal credit score. That one number can have a huge impact on everything from the interest rate on your home mortgage to the likelihood of you local bank allowing a seller to carry a second mortgage on an investment property. Since there are so many facets of your life that are touched by this credit score in some fashion, you must do everything in your power to improve your credit worthiness. Here are five simple tips on how to do just that!
1. Know your credit score! I can’s stress enough how important this is. You must know your credit score, and as equally important, know what’s on your credit report. It’s usually a very good idea to have a credit monitoring service keep track of changes in your credit report for you. Services available from all the major credit companies will even provide you with a free monthly credit report and online dispute resolution for free when you sign up for their monitoring service. This also helps in the early detection of identity theft.
2. Increase the limits on your credit cards. Increase the limit on each of your credit cards. This is vital to improving your credit score. Increasing your limits on your credit accounts will improve your credit score in literally minutes! There is no faster way to improve your credit score, and this is a fairly easy step that can be done online or over the phone with your issuing bank.
3. Maintain a low total debt load percentage. Keeping your total debt to approximately 20 percent of that limit at any given time is important as well. The lower your debt level in relation to your credit limit, the more responsible you'll seem to the credit reporting agencies and the higher your score will rise.
4. Fix negative items on your credit report. Write credit reporting agencies and companies responsible for submitting your delinquencies to dispute negative aspects of your credit report. Write a letter and explain why something should be removed. Sometimes that’s all it takes.
5. Pay your bills on time! This is an obvious point to some people, but not so much to others. Even only paying 30 days late a few times a year can have a serious negative impact on your credit score. Try to maintain your accounts and keep them paid on-time, all the time. Late payments have a nasty habit of staying on your credit report for up to two years.
All of these tips will improve your credit score drastically and set you up for obtaining some great financing terms from residential and commercial lenders, lower auto loan rates, and...higher credit card limits!
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The above articles should have enough information on real estate investing, foreclosures, flipping houses, multi-family properties, and tricky financing to get you well ahead of your competition in the real estate investing world. Every few days new articles are posted to help introduce our readers to new and exciting tips, tricka, and tactics to make your real estate investing career a profitable one!