Proven Ways to Raise Your Credit Score Fast Before Buying in the DC Area
If you are planning to buy a new home in DC, having the best credit for getting approved for a home loan should be one of your priorities. If you are coming from a difficult financial situation and looking for ways to increase your scores quickly, you’ve come to the right place.
While credit scores take time to improve, there are steps you can take to start the ball rolling.
What is a credit score?
A credit score shows your ability to repay a loan based on how you’ve repaid debt successfully.
If you want to know if your scores are good enough to get approved for a loan, contact a mortgage broker in the DC area to learn more.
What are the things that impact your credit score?
There are a number of factors that may affect your credit scores:
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35% of your score is based on how regularly you pay your debts on time. This includes your credit cards, car payment, student loans, and phone bills.
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30% of your score is built around how much of you’re available credit you are using. If you have a high percentage of credit available, you are a responsible borrower who is disciplined enough not to max out credit cards.
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15% of your score is calculated based on how long you’ve built your credit profile. In this case, the longer your profile, the better.
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10% of your score rests on the various types of accounts you have. An ideal scenario would mean having a combination of installment loans and revolving loans.
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The last 10% of your score is taken from how recently you’ve opened new credit lines. If you plan to apply for a mortgage, it would be better to refrain from taking out new credit cards or loans.
Why do credit scores matter?
A good to great credit score can increase your chances of qualifying for a loan and save you thousands of dollars since you can negotiate for better interest rates when you apply for a mortgage.
What is considered a good credit score?
FICO credit scores range from 300 to 850. Good scores fall between 670 to 739, Very good from 740 to 799, and exceptional scores from 800 to 850.
If your credit scores fall in the good to exceptional category and you want to explore your loan options, you can get pre-approved for a DC area home loan. Contact our loan officers to help you get started.
Steps to increase your credit scores at once:
Raising your credit score takes time and depends on your starting score and why your scores are low. Lenders report to the credit bureaus every 30 to 45 days, and you may notice improvements in your score if you take the steps needed below:
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Increase your credit limit
A higher credit limit will result in lowering your credit usage percentage. If you can request your credit card company to increase your limit without taking a hit, then it would be a good move.
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Look for errors
People have bad credit scores due to errors in their credit reports. Review your reports and be sure to dispute errors with the bureaus and make sure they are resolved. Hiring a credit repair service can help if you have the extra budget.
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Pay down credit balances
Paying off credit balances can boost your credit scores faster.
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Avoid making large purchases or opening new accounts
If you are applying for a mortgage soon, avoid making large purchases or opening new credit accounts since it can negatively impact your scores and affect your chances of qualifying for a loan.
Are you ready to buy your new DC home?
Improving your credit scores won’t happen overnight. With a bit of time and patience, you’ll be able to improve your scores and get the loan you’ve always longed for.
The Mortgage Option can give you the best financing options if you are ready to buy your new DC home.
Call or message us today for a free consultation.
Our loan officers would be glad to take your call. Get started on your journey to homeownership in DC today.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.