As 2013 comes to a close I’m getting a lot of potential buyers asking me what they can do to improve their credit to purchase a home in 2014. The holiday season is often a time for running up credit cards for Christmas gifts which causes your credit score to drop. To get your score to rise follow some of these tips below.
- Check your credit report. Look for errors and formulate a game plan for reducing the credit that is reported.
- Do not open new credit cards.
- Keep your balances at 30% or below. ($1000 credit limit, keep at $300 or below). Balances over 30% drop your score.
- DO pay your bills on time. Late payments can have a devastating effect on your score.
- Pay off the credit cards
- Do not close credit cards, especially if you have had them for a while. Credit history improves your score.
Follow these tips and your score should go up. If you need further information on this subject do not pay for it. If you are working towards buying a home your Realtor and Lender can give you more tips. Also David Ramsey and Susie Orman have an abundance of free information that can assist you.