Looking to Procure a New Mortgage in 2015? 3 Ways to Boost Your Credit

Posted by Dan Wolf on Monday, January 5th, 2015 at 8:09am.

Your credit history is you on paper to a mortgage lender. It is everything a lender needs to know up front. It is often the first thing lenders check before moving on to the second and third steps of loaning you money. A good credit score is also the best way to get a respectable interest rate, an aspect of home buying that people often overlook.    

So if you're looking of ways to boost your credit score in 2015 because  buying a new home is on the horizon, here are 3 ways to boost your credit.

1. Past Due No More: If you have accounts on your credit report that are supremely past due (90 days or more), your first goal is to do whatever you can to pay them off, and have them removed. Lenders use your payment history as a means of judging whether or not you'll pay them back. Negative marks such as this do not help your cause in borrowing their money.

2. Good Faith Help: If your credit report isn't stellar, but is also not that bad, you can help to erase some of your mistakes by asking for good faith adjustments with your current creditors. If you have been a good customer to the creditor, and perhaps just forgot a payment one time a few months ago, call them and ask to have it removed, and they may just say yes. One less black mark on your history can significantly boost your credit score.

3. Deal with Defaulted Accounts: An account that has gone to collections will never look good on your credit report. So while paying of defaulted accounts that are more than 2-years past due won't help boost your immediate score, anything within those 2-years will. So start with accounts closest to the current date and move backwards. Every step you take towards showing you care makes you that much more attractive to lenders.

 

In the end, your credit score isn't the only aspect a mortgage lender looks at, but that doesn't make it any less important. Work on improving your credit now so you won't be surprised by a set-back when you find the home of your dreams.

For more information on how we can help you with the home buying process, please don't hesitate to contact us at 907-248-9653 or visit us at www.anchoragehomeseach.com

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